Where the wealth is booming in the world

7 years ago - Published in Finance, Fundamental Analysis

The number of millionaires in the world rose by nearly 8 percent last year to an all-time high of around 16.5 million people, with record total wealth of $63.5 trillion, according to a report by global consultancy firm Capgemini.

Booming global stock markets has catapulted an extra 1.15 million people into the high-net-worth individual (HNWI) bracket, according to figures from Capgemini's 2017 World Wealth Report.

The wealth of HNWI, which Capgemini defines as those with investable assets of $1 million or more, excluding the primary residence, collectibles and consumables, rose 8.2 percent on the year in 2016 and is on track to surpass $100 trillion by 2025.
Some 1.15 million people became millionaires last year, the report said.

The majority of the wealth continues to come from North America, Europe and Asia, with each market growing its HNWI population by an average 7.5pc last year, and their wealth by around 8.2pc.

The United States continues to dominate with the number of millionaires in the country, while Japan, Germany and China also make the top five list. 

In the U.S., their ranks rose to 4.8 million from 4.46 million, while the number of millionaires in China, with four times the U.S.'s population, rose to 1.13 million from just over 1 million.
Asia-Pacific, Europe and North America contributed equally to the rise in wealth, with Russia, Brazil and Canada reversing course from declines a year ago, the report showed.

France overtook Britain in the top five in terms of the number of millionaires, helped by a recovery in real estate, while Sweden knocked Singapore, which saw a decline in its equity market, out of top 25.

Russia recorded the fastest growth, at about 20 percent for both its HNWI population and wealth, following modest 2015 decreases. Brazil had double-digit increases in both population and wealth, following a significant decline in 2015," Capgemini said in a statement.

The study covers 71 countries, accounting for more than 98 percent of global gross national income.

The report did not dive into the reasons for the reallocation, but stronger global growth, coupled with hefty liquidity after years of unprecedented stimulus by global central banks, have pushed stock markets around the world to record highs.

On the other hand, investors are wary of geopolitical risks, with tensions growing between the United States and North Korea, and are uncertain about the consequences the U.S. Federal Reserve's exit from unconventional stimulus might have on economies and markets.