Social Circle - Global increase in millionaire population.
The surge in the stock market in various regions during the previous year has made many wealthy and expanded the millionaire community.
As per a report by Capgemini, the count of people with investable assets worth at least $1 million grew by 5.1% to around 22.8 million worldwide. This is the highest level since the assessment in 1997. The abundant assets of the rich reached a record high of about $86.8 billion (€79.64 billion).
Even with average growth rates, records were established in Germany as well. Capgemini expert Klaus-Georg Meyer clarified the results of the current "World Wealth Report," stating that the increase in stock market value reflects the improvement in the wealthy.
In Germany, which was hit with a recession the year before, the affluence of the rich went up by 2.2% to $6.28 billion. The number of dollar millionaires rose by 34,000 (2.1%) to 1.646 million members. According to Meyer, the main contributing factors were higher savings rates, the rise in stock market prices, and the drop in inflation, though it's still high at an average of 5.9%. However, the positive development was offset by the fall in real estate prices.
The United States remains on top of the countries with the most millionaires, comprising 7.431 million affluent individuals. Japan is in the second position with an estimated 3.777 (previous year: 3.551) million wealthy people. China is in the fourth spot with approximately 1.5 (previous year: 1.498) million affluent individuals. "China is yet to exceed Germany in this regard," Meyer said.
The most prominent growth was found in North America. Fueled by a thriving economy, reduced inflation, and a boom in the stock market, the wealth of the rich in North America increased by 7.2% to $26.1 billion, and the count of wealthy people rose by 7.1% to 7.431 million. "This trend is continuing in most regions, albeit to a lesser extent," the report said.
Individuals who are millionaires or wealthier display significant disparities. It's estimated that the top 1% of the super-rich with assets exceeding $30 million control 34% of the total wealth. More than 70% of the super-rich are self-made millionaires, and about 20% are below 40 years of age. Capgemini attributes this to digital entrepreneurs.
The "World Wealth Report" compiled by Capgemini since 1997 includes stocks, fixed-income securities, alternative investments like private equity capital, cash, and real estate, excluding any real estate used for personal purposes. It doesn't calculate collections or consumer goods.
This study spans across 71 countries which contribute to more than 98% of global GDP and 99% of global stock market capitalization. Additionally, 3,119 millionaire respondents were surveyed at the beginning of the present year about their investment strategy.
