Prosperity of the Affluent Hits Record Highs
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According to the latest findings from Capgemini's annual World Wealth Report, the total wealth of the rich has skyrocketed to a staggering $90.5 trillion. This growth is fueled by an unprecedented increase in the number of ultra-wealthy individuals, outstripping even the economic powerhouse of Germany.
The Affluent Elite Expands
The wealthy, defined as individual possessing more than one million dollars, are now numbering a whopping 23.4 million. This stellar growth represents an addition of 2.6 million high-net-worth individuals in just one year.
The surge in wealth is primarily driven by the swelling ranks of the ultra-rich, with fortunes exceeding $30 million. Capgemini's report attributes this trend to optimism concerning artificial intelligence and burgeoning stock markets [1].
The United States Steps Ahead
The US delivers a strong performance, with an astonishing 7.6% increase in millionaires, placing the country at the brink of boasting nearly 8 million millionaires. The surge in millionaire households can be attributed to soaring stock prices [2].
Europe's Decline: On the Wrong Side of History
On the other hand, Europe is grappling with a decline in affluent residents, primarily due to economic stagnation across major economies, such as Germany, which experiences a loss of around 21,000 millionaires in a single year. Despite this downturn, the number of Europe's ultra-wealthy private individuals grows by 3.5% [2].
Germany's Dwindling Fortunes
Germany's shrinking millionaire population can be traced back to falling real estate prices [1]. Perhaps contrary to popular belief, the total wealth of the rich within Germany remains relatively stable, holding steady at approximately $6.32 trillion.
Capgemini's analysis encompasses 71 economies, accounting for over 98% of global GDP and 99% of global market capitalization [3]. Notably, other assets such as art collections, jewelry, and cars are not included in the study.
References:[1] Capgemini, "World Wealth Report," published annually since 1997.[2] ndtv.de, gho/dpa/AFP.[3] Capgemini, "Combining Wealth and Asset Management, the path to an integrated strategy."[4] Capgemini, "High-net-worth and Ultra-high-net-worth North America Wealth Management: Catering to a diverse market of global wealth."[5] Credit Suisse, "Global Wealth Report."
- In light of the findings from Capgemini's annual World Wealth Report, it appears that the surge in wealth among the rich is not only due to the increase in the number of high-net-worth individuals but also driven by optimism concerning business sectors such as finance, including burgeoning stock markets.
- As the wealth of the rich continues to soar, policies such as community policy and employment policy become increasingly important for managing personal-finance matters, especially for the expanding affluent elite.
