The number of millionaires will increase worldwide, except in two countries

Published:

11 Jul 2024 13:38 GMT

The number of people with wealth of more than $1 million is expected to increase in 52 of the world’s 56 economies over the next four years.

Swiss bank UBS project In its new annual report on global wealth, the number of millionaires worldwide will have increased by 2028, The United Kingdom and the Netherlands being the only exceptions..

According to UBS, wealth is defined as the value of the financial assets (stocks, bonds and savings accounts) and tangible assets (buildings and land) that a person owns, minus their debts. It also mentioned that Global wealth is expected to grow by 4.2% in 2023following a 3% decline recorded in 2022.

This recovery was driven by growth in Europe, the Middle East and Africa. The financial institution explained that, while the decline in wealth worldwide in 2022 was largely due to the strength of the dollar, last year’s rebound surpassed 2021 levels, even when measured in local currencies.

The countries with the most millionaires

UBS stated in its report that USA It is home to the largest number of millionaires in the world, with approximately 22 million. China ranks second with 6 million millionaires, followed by United Kingdomwith 3 million. In the case of Japan, Germany and Francethe Swiss bank detailed that they have a population of millionaires below 3 million, while Canada and Australia have less than 2 million.

Decrease in millionaires in the United Kingdom and the Netherlands

After analyzing income and wealth data from 56 economies around the world, UBS predicted that in 52 of these, The number of people with a net worth of over a million dollars will increase over the next four years. The greatest growth in millionaires is expected to occur in Taiwan and Türkiyewith 47% and 43% respectively.

This growth would be followed by Kazakhstanwith 37%, Indonesia (32 %), Japan (28 %), Israel (26 %), Mexico (24 %), Brazil (22%) and Russia (21%). With respect to USA and Chinawould experience an increase in millionaires of 16% and 8%, respectively. However, UBS predicts that the number of wealthy individuals in the UK to decline by 17% in 2028Meanwhile in In the Netherlands, the reduction would be 4%..

What are the factors that would influence the fall?

UBS Global Wealth Management chief economist Paul Donovan he claimed that the forecast figure for the decline in millionaires in the UK is “disproportionately high”At the same time, he argued that the factors that would influence the fall were should mainly due to the British Government’s decisions regarding anti-Russian sanctions and changes in the tax regime for foreign residents to pay taxes on their income abroad.

“We’ve obviously seen in the UK over the last few years, as we’ve seen in other countries, implications of sanctions against Russia“Donovan said, trying to explain the decline in the number of millionaires. According to CNBC, sanctions by the United Kingdom against Russia prevent Russian millionaires from investing in British territory.