Decline in the Number of Millionaires in the UK
According to a wealth analysis conducted by the Swiss bank UBS, the United Kingdom is projected to lose the most millionaires by 2028. The Financial Times reports that there will be a 17% decrease in the number of British millionaires.
Global Wealth Trends
The report also indicates that the Netherlands is another country where the number of millionaires is expected to decline by 4%. Interestingly, out of the 56 countries analyzed, only four will see a decrease in the number of individuals with assets exceeding one million dollars.
Global wealth has been on the rise, with a 4.2% increase in 2023 following a 3% contraction in 2022. The annual report on individual wealth by UBS reveals that Switzerland leads the list of average wealth per adult, followed by Luxembourg, Hong Kong, and the United States, as reported by EFE.
The Global Wealth Report, which started in 2023, provides insights into the changing landscape of wealth distribution worldwide. Despite the projected decline in the number of millionaires in certain countries, the overall trend shows a positive growth in global wealth.
Wealth Report 2023: Global Wealth Continues to Rise
The Wealth Report 2023, previously elaborated by Credit Suisse in 2010 and currently conducted by UBS, indicates that wealth has grown by 4.8% in Europe and the Middle East, with an average wealth of $166,000 per adult. This is followed by the Asia Pacific region, which saw a 4.4% increase with an average wealth of $156,000, and then by America, where wealth increased by 3.6% to an average of $146,000.
Global Wealth Trends
The report also highlights that after the impact of the strengthening dollar in 2022, global wealth saw a recovery in 2023. Individual wealth benefited from a slowdown in inflation, resulting in a real price-adjusted growth rate of around 8.4%, surpassing the 4.2% level seen in previous years.
Small Savings, Big Wealth
The average wealth in Switzerland is just over 200,000 dollars, making it one of the wealthiest countries in the world. This is attributed to the country’s strong economy and stable financial sector, which have allowed for significant wealth accumulation among its population.
Global Wealth Rankings
In 2023, the country with the highest average wealth per adult was Switzerland, with $709,000, followed by Luxembourg with $607,000, Hong Kong with $582,000, and the USA with $564,000 (down one spot from 2022). The top 10 list also includes Australia, Denmark, New Zealand, Singapore, Norway, and Canada, all with an average global wealth per adult of over $375,000. Among the major economies in the ranking are the UK ($350,000), France ($329,000), and Germany ($264,000).
Spain’s Wealth Ranking
Spain ranks 22nd, with an average wealth slightly above $225,000, surpassing Japan and Italy, which follow in the study of wealth in 56 world economies, accounting for 92% of global wealth, according to EFE. Emerging wealth in emerging countries
The Wealthiest Countries in the World
When it comes to wealth growth, Turkey has seen the highest increase compared to other countries, with a staggering 157.78% rise. Following closely behind are Qatar, Russia, South Africa, and Israel. Since the first report in 2010, the country where wealth has grown the most, aside from Kazakhstan’s exceptional case (190% increase), is China (185%), followed by Qatar, Israel, and India, all doubling their wealth. However, Spain is one of the four countries where wealth has decreased in these 13 years (by 1%), along with Italy, Greece, and Japan (the latter experiencing a significant decrease of 23%).
Income Inequality Rankings
The report also ranks countries based on wealth distribution inequalities, with South Africa, Brazil, the United Arab Emirates, Saudi Arabia, Sweden, and the USA leading the way in this regard.
The Distribution of Millionaires Around the World
Belgium tops the list for the country with the lowest wealth distribution, followed by Qatar, Australia, Japan, and Spain. The report also highlights the number of millionaires (individuals with assets over one million dollars) per country. The United States leads the way with around 22 million millionaires, accounting for almost two in five globally. China follows with over six million, the United Kingdom with three million, and Japan and France with 2.8 million each.
Between one and two million individuals in this category are South Korea, Canada, Australia, Switzerland, Italy, the Netherlands, and Spain, the latter with 1.1 million millionaires. According to the report, this number could increase to 1.3 million in five years.
The Future of Wealth: A Look at Millionaires
A recent report indicates that millionaires make up only 1.5% of the total population in the analyzed countries. Climbing to the top is not impossible, though.
Looking ahead, the report estimates that one in three individuals will move up a position on the wealth scale. UBS considers four scenarios on a scale of 10: wealth of less than $10,000, between $10,000 and $100,000, between $100,000 and a million, and millionaires.
Furthermore, it calculates that in the coming decades, wealth transfers of over $83 trillion will take place globally, a figure similar to the entire world’s economic activity in a year. This transfer of wealth will initially move horizontally, between spouses (following the death of one of them), before passing on to the next generation.