The financial assets of the Germans has risen despite the persistent high interest rates and price losses on the stock markets. This emerges from Allianz's annual "Global Wealth Report 2019," which covers cash, bank deposits and securities, as well as claims against insurance and pension funds, but not real estate, for 53 countries. "The Germans save with power against the drought in interest and capital gains," said Allianz chief economist Michael Heise. By contrast, gross financial assets worldwide fell for the first time since the 2008 financial crisis.
Reason for the increase is, according to the Alliance, the booming labor market and rising wages. As a result, more people are able to cover money. Gross debt - including debt - rose by 2.2 percent to 6.2 trillion euros in 2018, despite stock price slumps. This made Germany one of the few European countries to grow. In 2018, for the first time, financial assets in industrialized and emerging economies fell at the same time. Even in 2008, at the height of the financial crisis, this was not the case.
The financial assets of the Germans is net per capita at 52,860 euros. Germany remained 18th in the list of the 20 richest countries. The list is headed by the USA, Switzerland, Singapore, Taiwan and the Netherlands. It is followed by Japan, Sweden, Belgium, New Zealand, Denmark, Canada, United Kingdom, Israel, Australia, France, Austria and Italy.
Number of shareholders and owners of equity fund shares is rising
Contrary to their reputation, the German households were by far not the most cautious savers in the past year. The share of bank deposits in fresh savings deposits rose to 57 percent. In the rest of Western Europe, however, the value was 68 percent. The German savers invested according to the information a fifth of their investment funds in shares and funds, the other households sold in the total securities.
According to the German stock corporation, in the past year, despite the price turbulence more retail investors in Germany have dared to go public. The number of shareholders and owners of equity fund units rose on average by about 250,000. In total, approximately 10.3 million citizens over the age of 14 owned equity funds or company shares. Thus, the number of stockholders reached the highest value since 2007.
Global financial assets are shrinking
The escalating trade conflict between the US and China, the uncertainties of Brexit and geopolitical tensions clouded investor sentiment. "Increasing insecurity takes its toll," said Heise. Trade is not a zero-sum game. "Either all win - as in the past - or lose it all - like last year." Net, ie minus debts, the financial assets in the 53 analyzed states decreased in total by 1.9 percent to 129.8 trillion euros.
Given the stock market recovery in the first half of the year, Allianz expects global gross wealth growth to grow by just under 7 percent this year. Assuming that there were no political stunts that burdened the stock markets.