Number of billionaires worldwide increased by seven percent
Super-rich people around the world have recently been able to increase their huge fortunes again. In the twelve months to April 2023, the number of billionaires worldwide climbed by seven percent to 2544, according to a study published on Thursday by the major Swiss bank UBS. Their total assets grew by nine percent to twelve trillion dollars.
For the first time, Europe made the largest contribution to this growth. This was driven by the buying spree following the pandemic, which caused the share prices of France's luxury goods and cosmetics companies to rise. This benefited their owner families. Companies such as LVMH, Kering, Hermes and L'Oreal are based in the country, which now has a total of 34 billionaires. Germany has 109 and Switzerland 75 billionaires.
While it was mainly technology and healthcare entrepreneurs who amassed wealth in the past decade, owners of retail and consumer goods manufacturers have benefited in the last twelve months. In the meantime, however, there are already signs of a shift from which industrialists are likely to benefit. This is because governments in a number of countries are promoting the energy transition and higher defense spending.
UBS also pointed to another change in trend. For the first time since the survey began, billionaires had acquired more wealth through inheritance than through entrepreneurship. "We expect this theme to become more widespread over the next 20 years as more than 1,000 billionaires are estimated to bequeath 5.2 trillion dollars to their children," explained Benjamin Cavalli, who is responsible for the business with the super-rich at UBS.
- The recent study published by UBS revealed that the number of billionaires who increased their assets by seven percent includes those associated with retail and consumer goods manufacturers, like the owners of German companies Lidl and Aldi, both of which are in the sector.
- According to the UBS report, Grobank, being a major player in South Africa's banking sector, might notice an impact as their billionaire clients' wealth grew by nine percent and reached a staggering twelve trillion dollars globally.
- Despite the seven percent increase in the number of billionaires worldwide, only a small percentage of this wealth will actually be used for studying, as the majority of billionaires' funds are primarily invested in businesses and stocks, with only a minimal portion allocated for philanthropic causes or educational pursuits.
Source: www.ntv.de
