North America leads amid booming markets and widening divides
Despite slowing economies in parts of Europe and Asia, global household wealth surged again in 2024, hitting a record €269 trillion (U$312.6 trillion).
The new Allianz Global Wealth Report 2025 reveals that financial assets expanded by 8.7%, outpacing 2023’s already-strong 8.0% gain. But beneath the surface, familiar trends persisted such as American dominance, weak European savings returns and widening divides between rich and poor nations.
North America, led overwhelmingly by the United States, still commands about half of all global financial assets. The region was responsible for more than half (53.6%) of the world’s asset growth in 2024, Allianz found, while Western Europe and Japan lagged well behind. “When it comes to financial wealth, the US continues to call the shots,” the report states.
China remains the world’s second force in household wealth, now holding roughly 15% of global assets, a fivefold rise since 2004. But its growth has cooled as household borrowing slows and the real estate slump drags on.
American households channeled 67% of new savings into securities such as equities and funds, compared with just 26% in Western Europe. This focus on higher-return assets helped US investors achieve average annual financial-asset growth of 6.2% over the past decade, versus 3.8% in Western Europe.
European savers, though diligent by setting aside a larger share of income, still see weaker results due to their heavy reliance on low-yield bank deposits and insurance products.
Property markets showed tentative improvement, with real estate values rising 3.6%, more than double 2023’s pace but still historically muted. Gains were concentrated in North America, where limited housing supply kept prices high despite elevated mortgage rates. In contrast, parts of Western Europe saw flat or falling prices, particularly in France and Germany.
Global private debt grew only 3.1%, its slowest rate in years, bringing total household liabilities to €59.6 trillion ($69.4 trillion). Even with rate cuts from central banks, credit appetite remained weak, especially in advanced economies.
China’s once-explosive debt growth nearly stalled at 3.4%, a fraction of its long-term average. Allianz noted that global deleveraging continues, with household debt now averaging 62.6% of GDP, down eight percentage points from 20 years ago.
Stronger asset performance and restrained borrowing fueled a 10.3% jump in net financial assets last year, to €210 trillion ($244.3 trillion), twice the level of a decade ago. North America alone now holds over half of the world’s net wealth, while China’s rapid accumulation remains unmatched among emerging markets.
The report warns that the long-run narrowing between rich and poor nations has “more or less come to a standstill.”
From 2017 onward, wealth gaps between developed and emerging economies have barely budged. Domestically, inequality remains entrenched: within most countries, the richest 10% still hold about 60% of total wealth, unchanged in 20 years.
Looking ahead, Allianz expects global financial assets to grow around 6% in 2025, well below the previous two years. Elevated valuations, especially in the US, along with trade policy uncertainty under President Trump’s second administration could dampen momentum.
