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Peru’s wealth would fall by US$ 24,000 million this year | Credit Suisse | YOUR MONEY

Peru’s wealth would fall by US$ 24,000 million this year | Credit Suisse | YOUR MONEY

This would happen after global household wealth recovers in 2021, supported above all by the good performance of financial assets, according to research from.

In Peru, the The adult population also increased that year to $477 billion, according to data from the Swiss bank.

This amount implied a growth of US$ 49,000 million (11.4%) compared to 2020, and US$ 28,000 million (6.2%) compared to 2019. In 2020, the wealth of Peruvian households fell by 4.7% as a result of the pandemic .

Despite the recovery in 2021, the wealth of the country’s population would fall by at least 5% this year. experts from the estimated investment sector. In amounts, the reduction would be around US$ 24,000 million, up to US$ 453,000 million.

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the wealth of man

According to a report from Credit Suisse, last year wealth per person (per capita) in Peru reached US$20,940, a figure 10.2% higher than 2020. Peruvians rank fifth in the region in terms of average wealth.

This individual wealth is defined as the value of financial assets plus non-financial assets (mainly housing and land), minus debts.

The financial asset component of personal wealth increased by 11.8% in 2021, while the non-financial wealth component increased by 8%.. However, the latter, including the value of the has not yet reached pre-covid levels.

Similarly, 14.6 million Peruvians (63.9%) registered assets up to US$10,000.

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2021 was a year in which financial assets and property assets were recovered and, in addition, debt was reduced“, he said Jorge Espada, managing director of Valoro Capital.

He said that there was a devaluation in all properties, mainly commercial and office ones, after the start of the pandemic. Last year these values ​​increased in line with the reopening of the economy, he said.

Paul Rebolledo, CEO of Tandem Financehe refers that the increase in the wealth of Peruvians in 2021 was explained by the good performance of local and international stocks and mutual funds that invest abroad.

How will wealth fare this year?

However, this year there is a decrease in the wealth of the Peruvians due to the devaluation of funds, stocks and bonds, said a source in the wealth management market. “Properties holding up, but trending down”, he said.

The nervousness generated by the increase in international interest rates, high inflation and expectations for low economic growth is hitting the value of local and international bonds and shares, Rebolledo said. He estimated that wealth in Peru would fall between 5% and 10% this year.

Sword came with that reduced range of wealth. In 2022 the value of financial assets will decrease and, therefore, the financial wealth of Peruvians will fall, he predicted..

And on the non-financial wealth side, political uncertainty and rising mortgage interest rates play against the real estate sector, Rebolledo said.

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Average debt is still below pre-covid levels

The average Peruvian debt at the end of last year was S/ 1,635. Although this amount was 1.2% higher than the amount registered in 2020, it is still below pre-pandemic levels (S/ 1,782), according to data from Swiss credit.

“In the post-pandemic, with the extra savings, what was done was to pay off debt”, he referred Jorge Espada, managing director of Valor Capital.

This year, inflation and rising interest rates are making people unqualified for consumer loans, as payment fees have increased, said a strong from the wealth management sector.

Paul Rebolledo, CEO of Tandem Finance, indicates that the arrangement of loans to individuals is limited by local and international uncertainty, weak economic growth and the banks’ stricter lending policies.

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