Social circle or community "Society" refers to a group of people who are connected by shared characteristics, interests, or relationships. This term can be used to describe a wide range of groups, from a small network of friends to a larger community with more complex social dynamics. - Higher number of millionaires globally than ever before.
The surge in various stock markets last year has led to the growth of the dollar millionaire population and the upliftment of the wealthy. As per a report by the consulting firm Capgemini, the number of individuals having assets worth at least a million dollars surged by 5.1% to an approximate figure of 22.8 million across the globe. This is the highest number since the inception of this assessment initiative in 1997. The overall wealth of the rich reached a record high, touching 86.8 billion dollars (approximately 79.64 billion euros). Though the growth was below average, some impressive records were set in Germany as well.
"The swelling of the stock market prices is inextricably linked to the surge in the fortune of the wealthy," noted Klaus-Georg Meyer, an expert from Capgemini, analyzing the outcomes of the current "World Wealth Report."
In Germany, which witnessed an economic lull last year, the wealth of the affluent increased by 2.2% to 6.28 billion dollars. The number of dollar millionaires surged by 34,000 (2.1%) to 1.646 million. Enhanced savings levels, soaring stock market prices, and the decreasing inflation (still lingering at a high average rate of 5.9%) were driving factors. However, the upward trend was partially offset by the fall in real estate prices.
The United States continues to top the list of countries with the most dollar millionaires, boasting about 7.431 million rich individuals. Japan comes close second with 3.777 (a prior year count of 3.551) million millionaires. China holds the fourth spot with an estimated 1.5 (1.498 million as of last year) million high net worth individuals. "China has not accomplished overpowering Germany in this regard," mentioned Meyer.
North America witnessed the strongest growth in wealth and population of the wealthy. Driven by a thriving economy, dwindling inflation, and the surging stock market, the wealth of the wealthy in North America expanded by 7.2% to 26.1 billion dollars, with 7.431 million rich individuals occupying the space. "Similar trends are observed in most regions, albeit to a lesser extent," mentioned the study.
There exists a disparity among the rich. Capgemini estimates that the top 1% of the uber-rich, possessing assets equivalent to or above 30 million dollars, holds around 34% of the total wealth. More than 70% of the uber-rich are self-made millionaires, and 20% are under 40 years of age. The company believes this trend is primarily related to the rise of digital entrepreneurs.
Capgemini, since 1997, takes into consideration stocks, bonds, alternative investments such as private equity, cash, and real estate (which isn't used for personal use). Collectibles or items for personal consumption aren't part of their calculations. The survey spans over 71 countries representing over 98% of global GDP and 99% of global stock market capitalization. Additionally, 3,119 millionaires were queried at the outset of the current year about their investment strategy.
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- The highest number of millionaires globally, exceeding 22.8 million, is reported in the Capgemini's World Wealth Report, spanning over 71 countries primarily in North America and Europe, including Germany and China.
- Despite the global economic situation, the surge in the stock market has led to an increase in the number of millionaires in Germany by 2.2%, with over 1.6 million dollar millionaires, contributing to the overall wealth of the rich reaching a record high.
- The upliftment of wealth in North America is the most significant, with a 7.2% growth in wealth and the population of millionaires, driven by a thriving economy, low inflation, and a surging stock market.
- Interestingly, China, although having an estimated 1.5 million high net worth individuals, still trails behind Germany in terms of the number of dollar millionaires, as mentioned by Klaus-Georg Meyer, an expert from Cap Gemini.
- The wealth of the wealthy in Frankfurt am Main, a financial hub and city in Germany, has been boosted by enhanced savings levels, soaring stock market prices, and decreasing inflation, partially offset by the fall in real estate prices.
- Cap Gemini S.A., a global leader in consulting, technology, and digital transformation services, conducts an annual survey to evaluate the financial situation of millionaires, considering stocks, bonds, private equity, cash, and real estate assets, excluding collectibles for personal consumption.
- The upcoming economic situation and social affairs, influenced by various factors such as inflation and fiscal policies, will continue to affect the wealth of the rich, impacting the distribution of assets, even among the top 1% of the uber-rich.
- The rise of digital entrepreneurs, represented by over 70% self-made millionaires under 40 years of age, contributes to the increasing wealth and disparity among the rich, which is a significant observation in Cap Gemini's report.
