Summary

• World’s wealthiest people have seen more than 27 per cent rise in their wealth during the pandemic period from April to July - tech, healthcare and industrial sectors experienced immense demand.
• As of 31 July 2020, there are 2,189 billionaires worldwide - a record 38 per cent of them being from the Asia-Pacific region.
• The US still leads the throne of holding the widest global fortune worth US$3.6 trillion.
• The global extreme poverty rate rose for the first time since 1998 and is expected to set between 9.1 and 9.4 per cent by the end of this year.

Many people who had full-time and secured jobs before the pandemic have either lost them or experienced underemployment since the virus struck humanity in January earlier this year. At the same time, a report has highlighted that the richest humans have gained even more fortune amid the ongoing crisis.

DO READ: Amazon Shares Hit All Time High, Recorded Above US$3,000

Coronavirus pandemic seems to be in favour of billionaires, as their prosperity showed an increase of more than 27 per cent during the period from April to July, according to a UBS report. Those in healthcare, technology and industry have seen strong demand for their products.

Innovative sectors are experiencing everlasting growth in opportunities, while older sectors seem to have seen an almost constant decrease in demand.

Swiss bank UBS, the one responsible for annual research regarding the world wealth, has reported that billionaires and those in developing industries are likely to keep boosting their fortune. On the other hand, previously powerful sectors like real estate, finance, and entertainment services have experienced a less significant surge in wealth.

There were ‘only’ 969 billionaires at the end of 2009 and 2,058 billionaires by early April 2020; however, the number grew to 2,189 by 31 July 2020.

INTERESTING READ: Before They Were Famous: Inspiring Beginnings of These Five Billionaires

Where do these billionaires come from?

The Asia-Pacific region accounts for the highest number of billionaires, 831 to be exact. With that number, they represent approximately 38 per cent of all billionaires across the globe.

Interestingly, 91 per cent of the Asia-Pacific billionaires were reported to be women.

However, the American billionaires still lead the race with a total fortune of US$3.6 trillion.

Digital and advanced era

As the coronavirus pandemic forced people to spend more time at home, it comes as no surprise that the technology sector experienced a high demand for their services and goods.

UBS reported more than 41 per cent growth in wealth of those billionaires, as a result of high demand for e-commerce and digital services.

More than 44 per cent surge was reported within the industrials segment, also due to global shutdowns.

The richest in the healthcare sector are following the two tycoon segments, as pharmaceutical companies gained a lot of money for finding a COVID-19 cure. The virus also caused a rise in demand for respiratory and other medical devices, adding to the profits of the health division.

INTERESTING READ: A glance at two ASX listed expensive healthcare stocks – CSL and COH

These groups are only expected to become more prosperous over the next few years, as the billionaire trend within these sectors is anticipated to continue. 

Real estate, however, has shown the slowest increase in adapting to technology. Only 17 per cent of billionaires within that sector have demonstrated tech efficiency. Financial services are slowly following the downward trend, with a meagre 37 per cent of their billionaires showing innovative behaviour.

The marketplace

Even though many nations experienced significant losses and introduced a state of recession, the stock market saw a massive improvement as many shares performed well above average.

Mainly, Elon Musk and Jeff Bezos, Tesla and Amazon CEOs, respectively, have made the most prominent fortune out of the rise of their companies’ shares. To be more precise, Amazon and Tesla have both added more than US$60 billion in recent months.

Image Source: © Kalkine Group 2020

MUST READ: Are Innovative Tesla batteries set to change the future?

Gigantic donations and philanthropy impact

Yes, all these people earned more money than one person could ever possibly need. The same individuals have donated vast amounts of cash to those that have not been as lucky.

Between March and June of this year, billionaires contributed US$7.2 billion to other people and businesses. The richest have selflessly donated a fraction of their wealth to confront the pandemic and its consequences, illustrating significant philanthropy actions and investing in sustainable energy.

The US and Chinese billionaires have shown immense generosity, donating more than US$5 billion combined, while affluent Indian, Australian and British individuals contributed the least, just a bit over US$1 billion.

ALSO READ: AFR Rich List 2019: Meet Australia’s Ten Richest Billionaires

What is the current poverty rate?

Compared to 2,189 billionaires, there are far more people who are hungry and homeless.

The pandemic seems to be hitting the poor the hardest as the World Bank has reported record-breaking poverty rates.

The estimated poverty rate is expected to climb to between 9.1 and 9.4 per cent by the end of this year.

The bank estimated the most significant rise in extreme poverty in more than a decade, as levels have risen for the first time since 1998. A maximum of 115 million people will most likely become extremely poor by 2021, meaning they will have less than US$1.9 a day.

DID YOU READ: COVID-19 or No COVID-19: Billionaires Getting Richer While Pledging Support to Most Impacted  

Predictions

Even though the high poverty rate does not bear good news, some things could change humanity as we know it.

As a consequence of new billionaires within innovative sectors, experts believe that their technology could take life quality to a new level.

Emerging technologies in healthcare, such as 3D printing, robotics, and artificial intelligence (AI) could save the lives of millions of people in the future. Scientists and engineers are working together towards this goal, as the most important innovators of today’s world.

Elon Musk and other engineers are also working on implementing more ecologically friendly energy sources, as problems of global warming are emerging every day.

Blockchain technology is becoming more acceptable and who knows, it might become a standard thing for all future payments, alongside digital assets.

The spike in number of billionaires is undoubtedly a good thing, as long as they keep being as philanthropic as they are now. After all, money does make the world go round.

ALSO READ: Australian Billionaires Riding the Market Tide Adding More Billions?