According to Credit Suisse Group AG’s Global Wealth Report, the number of global millionaires will exceed 87 million in 2026, i.e. a rise of 25 million from 2021.The US tops the world millionaire table, still far ahead of China in second place. While India is home to about 1 per cent of the world’s millionaires, the US has 39 per cent
The number of millionaires globally will grow by 40% in the next five years, even as rising rates and Russia’s war in Ukraine are sinking asset classes and private fortunes this year.
By 2026, there will be more than 87.5 million people with at least $1 million in wealth, up from 62.5 million in 2021, according to Credit Suisse Group AG’s Global Wealth Report 2022 released on Tuesday.
Worldwide, there were 62.5 million millionaires at the end of 2021, 5.2 million more than the year before.
According to the estimates by the financial behemoth, the number of global millionaires will exceed 87 million in 2026, i.e. a rise of 25 million from 2021.The US tops the world millionaire table, still far ahead of China in second place. While India is home to about 1 per cent of the world’s millionaires, the US has 39 per cent.
The number will grow faster in emerging economies, with China almost doubling its millionaire population, the forecasts show.
The US added the most household wealth in 2021, followed by China, Canada, India and Australia, Credit Suisse said.
“We expect little or no change in the millionaire rankings of the countries with the next highest numbers of millionaires, i.e. Japan, the United Kingdom, France, Germany, Canada and Australia. However, some nations just below, including Korea, Taiwan (Chinese Taipei), India and Hong Kong SAR are likely to narrow the gap, particularly India, where the number of millionaires could total 1.6 million in 2026, more than double the number today,” Credit Suisse said.
Millionaires Pop
The number of millionaires will climb in the next five years, doubling in China. During the period till 2026, the number of millionaires in China is expected to grow by 97 per cent and 13 per cent in the world’s largest economy, the US.
The number of US dollar millionaires in India is expected to more than double by the year 2026, according to the report
In 2021, India had 7.96 lakh millionaires, which is expected to grow 105 per cent to 16.32 lakh.
The report said wealth per adult in India has risen at an impressive average annual rate of 8.8 per cent since the year 2000 and stood at $15,535 at the end of 2021, which is far below the global mean.By year-end 2021, median wealth in India had fallen to 41% of the world value, but median wealth in China had risen to 338 per cent.
By year-end 2021, median wealth in India had fallen to 41% of the world value, but median wealth in China had risen to 338 per cent.
While the 500 richest people in the world have lost $1.4 trillion in cumulative fortune in the first half of the year, Credit Suisse sees a fast recovery, especially for developing markets.
The Swiss bank expects China to keep creating massive wealth even as its economy is showing signs of strain amid Covid lockdowns and crackdowns in sectors including tech and property.
“Despite the inflation and Russia-Ukraine war setbacks, we believe that total global wealth will continue to grow,” the report said.
“We expect household wealth in China to continue to catch up with the United States, advancing the equivalent of 14 US years between 2021 and 2026.”
Credit Suisse forecasts private fortunes will rise 36% to $169 trillion by 2026, with wealth per adult climbing 28% globally and surpassing $100,000 in 2024. The number of ultra-high net-worth individuals — those with more than $50 million — will reach 385,000.
Developing markets were hit badly during the Covid-19 pandemic, and wealth growth slowed. But they regained momentum last year and Credit Suisse expects them to narrow the gap with the developed world in the next five years.
Fortunes will climb 10% annually in emerging economies, compared with a 4.2% rise in high-income nations.
Zooming In
The number of millionaires will double in some places
In 2021, global fortunes surged by 9.8% to $463.6 trillion from 2020, posting a much bigger increase than what had been recorded since the beginning of the century.
The top 1% owned 46% of all household assets, while the richest 10% of adults had 82% of global wealth. The US had the highest number of ultra-high-net-worth individuals — more than 140,000 — followed by China, with 32,710.
“There has been a reduction in the difference between rich countries and less rich countries, in particular because low- and middle-income countries are growing at a faster rate,” Anthony Shorrocks, Credit Suisse economist and report author, said during a press conference.