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Global wealth has recovered: China and the US account for the majority of billionaires

Global wealth has recovered: China and the US account for the majority of billionaires
Global wealth has recovered: China and the US account for the majority of billionaires

He global wealth growth recovered last year, recording a 4.2% reboundafter the 3% contraction suffered the previous year, largely attributed to the monetary impact of the strength of the dollar, according to the latest Global Wealth Report.

The 4.2% rebound offset the wealth loss of 2022, thanks to the growth in Europe, the Middle East and Africa (EMEA), a region that grew by 4.8%as well as in Asia-Pacific (APAC), where wealth increased by 4.4%.

In addition, as inflation slows,Real growth outpaced nominal growth in 2023, with inflation-adjusted global wealth growing by almost 8.4%.

While global wealth has been on a steady upward trajectory since 2008, the pace of growth has lost steam in almost all markets.

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Wealth and inequality: what to expect in the coming months

According to the report, a rise in wealth is far more likely than a fall across all wealth brackets and any time horizon. In fact, the analysis shows that approximately One in three individuals moves up to a higher wealth bracket within a decade and The probability of leaving the lowest wealth bracket in a thirty-year period rises to more than 60%.

Finally, It is expected that some 83 trillion dollars will be transferred in the next two decadeswhich is roughly equivalent to the value of all global economic activity in one year. A little-explored facet of this transfer is that a significant portion of this wealth will first move horizontally between spouses, before being passed on to the next generation.

In practice, this represents a considerable wealth transfer to women, given their comparatively higher life expectancy. Just over 10% of the massive wealth transfer, some $9 trillion, is expected to go to women. It is transmitted first horizontally and mostly in America.

Rise of the Billionaires

It is expected that the number of millionaires worldwide is expected to continue to rise over the next five years, according to UBS’s Global Wealth Report 2024.

It is expected that the number of adults The number of individuals owning $1 million or more is expected to grow in 52 of the 56 developed and developing economies surveyed between 2023 and 2028. The gains will be led by tech powerhouse Taiwan, where the Number of millionaires increased by 47% thanks to the rise of the microchip industry and the increase in immigration of wealthy foreigners.

This growth was followed by Turkey (43%), Kazakhstan (37%), Indonesia (32%) and Japan (28%). The two centres where most of the global millionaires are located are expected to bethe United States and mainland China saw their numbers rise by 16% and 8% respectively.

Source: Ambito

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