Richest of the world are getting richer as never before
Business
Their total wealth reached $86.8tr in 2023, a 4.7pc increase from the previous year
- Rising global stocks are the reason
- North America registers the largest year-on-year growth at 7.2pc for wealth and 7.1pc for population
- Widening inequality in the world have fuelled debates on making them pay their fair share of taxes
PARIS (AFP/Web Desk) – The world has never had so many rich people and their investments in soaring stock markets have made them wealthier than ever recorded, according to a study published on Wednesday.
The number of "high net worth individuals" (HNWI) – defined as people with liquid assets of at least $1 million – rose by 5.1 per cent last year to 22.8 million, according to consulting firm Capgemini.
Their total wealth reached $86.8 trillion in 2023, a 4.7pc increase from the previous year, according to the annual World Wealth Report.
The number of HNWI and their total wealth are the highest since Capgemini began the annual study in 1997.
Their fortunes have risen as stock markets have surged: New York's tech-heavy Nasdaq soared 43pc in 2023 while the broad-based S&P 500 gained 24pc.
The Paris CAC 40 grew 16pc while the Frankfurt DAX advanced by 20pc.
The number of HNWI and their wealth had each fallen by more than 3pc in 2022, a year of macroeconomic uncertainty and geopolitical tensions, the report said.
The decline in their wealth was the steepest in a decade as equities fell.
"However, 2023 brought economic growth and improved fortunes for major investment sectors to reverse the falloff," the report said.
"Despite ongoing interest rate uncertainty and rising bond yields, equities surged along with the tech market, fuelled by enthusiasm for generative AI (artificial intelligence) and its potential impact on the economy."
Rising wealth and inequality in the world have fuelled debates on making the rich pay their fair share of taxes.
Brazil and France have pressed fellow G20 countries to set a global minimum tax on the world's wealthiest people.
In 2023, North America registered the strongest HNWI recovery worldwide with year-on-year growth at 7.2pc for wealth and 7.1pc for population. According to the report, solid economic resilience, cooling inflationary pressures, and a formidable US equity market rally drove momentum. This trend continues in most markets, for both wealth and population respectively, but to a lesser extent:
The Asia-Pacific HNWI segment (4.2pc and 4.8pc) and Europe (3.9pc and 4.0pc) experienced more modest wealth and population growth.
Latin America and the Middle East recorded limited HNWI growth, with wealth up 2.3pc and 2.9pc, and population up 2.7pc and 2.1pc.
In contrast, Africa was the only region where HNWI wealth (-1.0pc) and population (-0.1pc) fell due to falling commodity prices and declining foreign investment.
