1、GLOBAL WEALTH AND LIFESTYLE REPORT 2025Marketing materialFOREWORDWelcome to the 2025 edition of our Global Wealth and Lifestyle Report.Hard times have hit high-end goods and services providers.Following a global savings glut and a seemingly endless buying spree among affluent consumers that lasted o

2、ver a decade,the luxury sector faced a downturn in winter 2024/25 at least by its own elevated standards.Higher interest rates and yields had already drained a significant amount of cash from private wallets.The economy was on shaky ground in Asia,following the bursting of the largest housing bubble

3、 in China.In Europe,high energy prices and a surge in highly competitive Chinese exports stifled any economic relief.Meanwhile,the US was in political campaign mode,followed by a change in administration.To make matters worse,the world was bracing for a looming trade war as Washington imposed tariff

4、s on Christian Gattiker-Ericsson,CFA,CAIA,Head of Research2Liberation Day.According to a senior executive in the luxury goods sector,the relentless price increas-es of recent years backfired massively as demand faltered due to these factors.So,is this good news for those consuming high-end goods and

5、 services?Our findings in the latest report suggest it might be.Although data collection was completed before the US administration an-nounced its new tariffs in spring 2025,our results still indicate a notable shift.The Julius Baer Lifestyle Index declined by 2 per cent in USD since 2024,which is q

6、uite exceptional.Historically,high-end consumer prices have risen at twice the rate of average consumer prices,implying an increase of more than 5 per cent during this period.Therefore,a decline of more than one percentage point underscores the headwinds facing the high-end sector,as outlined above.