The world has never had so many wealthy people – with fortunes being fuelled by soaring stock markets and strong economic growth in 2023, a study published Wednesday found.
The number of "high net worth individuals" (HNWI) — those with liquid assets of at least $1 million — rose by 5.1 percent last year to 22.8 million, consulting firm Capgemini reported.
Their total wealth also increased, growing by 4.7 percent to $86.8 trillion – the highest figure since the annual study began in 1997.
Stock market gains were a major driver of the wealth surge.
New York's Nasdaq soared 43 percent, while the S&P 500 gained 24 percent. The Paris CAC 40 grew 16 percent and the Frankfurt DAX 20 percent.
"Despite ongoing interest rate uncertainty and rising bond yields, equities surged along with the tech market, fuelled by enthusiasm for generative AI and its potential impact on the economy," the report said.
The United States remains the leader in the number of dollar millionaires, with 7.4 million HNWIs – a 7.1 percent increase in 2023.
Japan follows with 3.7 million, and China ranks fourth with 1.5 million.
Europe, driven by France and Italy, is doing well with a 4 percent growth in the number of millionaires.
Wealth tax?
The levels of wealth and the parallel increase in inequalities have given rise to debates on how to make the highest wealth contribute more to tax.
At the G20, Brazil and France are pushing for a global minimum tax on the highest net worth, which could raise an additional $250 billion if the world's 3,000 billionaires paid 2 percent of their wealth in income tax.
Capgemini's study also highlights a significant disparity among the rich.
The top 1 percent of the ultra-wealthy, those with assets of $30 million or more, hold about 34 percent of the total wealth.
More than 70 percent of these ultra-wealthy individuals are self-made millionaires. Some 20 percent are aged under 40, a trend largely driven by digital entrepreneurship.
(with newswires)
