Amidst talk of bailouts and austerity measures, it might appear that the economic recovery of the last five years has faced nothing but setbacks. However, according to the Global Wealth Report the annual growth rate of wealth around the world is robust and looks set to grow steadily over the next half-decade. Driven by an expanding middle class in developing countries and by a huge increase in the number of dollar millionaires.
Global Wealth – The Key Figures
345 Trillion Dollars
Global wealth is expected to reach $345 trillion by 2020, a 38% increase on 2015 levels. Although the United States will remain the wealthiest nation, much growth is expected to be driven by developing nations in Asia, Africa and South America. Combined, China and India have doubled their percentage of global wealth since the start of the century.
The number of dollar millionaires expected in China by 2020. Chinese wealth has grown exponentially in the last two decades, allowing them to play a serious game of catch-up with developed Western nations. As Chinese households get richer the number of millionaires will increase drastically – an estimated 74% increase in five years.
The total number of millionaires in the world by 2020, up from the current total of around 34 million. Three quarters of these individuals will live in the United States and Europe with the rest mainly in Asia. Despite this growth the millionaire’s club will still make up less than 1% of the world’s population.
For context the number of individuals around the world worth Billions – with a B – is 1,826 according to the most recent Forbes list. Their combined wealth stands at 7 trillion dollars – almost 3% of the entire World’s wealth. 290 people joined the Billionaire’s List in 2015 – with a massive 71 of those coming from China
The effect that this growth in high-net-worth individuals has had on the world of luxury and assets has already been huge. As we have covered on Appreciating Assets, the tastes of new millionaires and billionaires in Asia has greatly influenced the growth plans and marketing of luxury brands around the world. Looking at these figures it seems certain that this trend will only get stronger in the next five years.