Finance

World financial assets hit record €200 trillion in 2020

Friday, 08 October 2021 15:20
World financial assets hit record €200 trillion in 2020

(Ecofin Agency) - The value of all financial assets in the world increased by almost 10% in 2020 to €200 trillion. This amount takes into account all bank deposits, as well as the total value of financial securities and assets held in financial accounts and pension funds. The estimates are made by insurance company Allianz.

This increase occurred in a year marked by one of the deadliest pandemics in recent decades with hundreds of millions of people losing their jobs worldwide. Many countries are still struggling to recover. Governments in some rich countries have set up a backup plan to support their populations and companies that had no real opportunities to consume or even invest in concrete activities. Under these conditions, the outstanding bank deposits have exploded, up almost 12%, the first time in a long time. In some cases, countries have had to go into debt to support these response policies.

Africa had also experienced an increase in the balance sheet of banks and an increase in outstanding deposits. The second factor that drove the value of financial assets is corporate debt and equity. The S&P 500, which includes the 500 largest companies on US stock exchanges, has seen a solid increase, driven by tech stocks. Several countries and companies have also issued bonds to finance their covid-19 response plans. The outstanding holdings in insurance companies and pension funds have also contributed.

Over the period under review, the value of decentralized digital currencies has reached $2 trillion, thanks to sustained demand from several categories of investors. However, this increase in financial wealth has not benefited everyone, especially in Africa where a large portion of the population lacks access to financial opportunities.

For many people in the region, the downturn in consumption came with great hardship, as it is the daily purchases that keep some people going. The rise in the value of financial assets goes together with an even greater rise in the debt of companies and governments in rich countries. Sub-Saharan Africa suffers less from both phenomena.

Idriss Linge



 
Telecom


 
Public Management


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.