The declines are most dramatic in Russia. Here, the wealth of millionaires fell by 15.9 percent
Quelle: Getty Images/Ayhan Altun
For the first time in a long time there are fewer millionaires in the world. Russia’s rich are hit particularly hard. In Germany, on the other hand, the wealthy can hold their own better. Why can’t you call this a trend?
Dhe world is in upheaval, one crisis follows the next, weights are shifting, politically and economically. This is also leaving its mark on the world‘s wealthy, as the World Wealth Report by management consultancy Capgemini shows.
For the first time in many years, the number of millionaires has fallen significantly around the world. However, this applies to varying degrees depending on the region: Russia’s rich are among the biggest losers. Countries such as India and Indonesia are showing the greatest growth, while Germany’s wealthy are holding their ground. Above all, however, there are signs that the losses are likely to be ironed out again soon.
According to the report, there were 21.7 million dollar millionaires worldwide at the end of last year. This corresponds to a decrease of 3.3 percent or around 800,000. The investable assets were taken into account; for example stocks bonds, funds or real estate investments. The owner-occupied property or company assets were not taken into account.
Most millionaires are still there in the USAwhere the number is just under seven million, followed by Japan (3.55 million) and Germany, which remains third in the ranking with 1.61 million and, contrary to many expectations, has not yet been overtaken by China.
The numbers are based on calculations from a variety of data — there’s no real count taking place, so Capgemini experts don’t go door-to-door asking about the state of finances. The data are not to be taken as exact figures, but they are nevertheless considered to be reliable after the study has now been carried out for the 27th time.
Source: Infographic WORLD
Not only has the number of millionaires declined in 2022, but wealth has also shrunk – “even a little more than the number of millionaires themselves,” says Klaus-Georg Meyer, head of business and technology consulting for financial service providers at Capgemini. “This has a lot to do with the decline in market capitalization.”
In 2022, not only did almost all stock indices lose, but at the same time bonds also suffered large-scale losses. In some countries, real estate prices also fell. As a result, the global wealth of the rich shrank from $86 trillion to $83 trillion, or 3.6 percent. The German millionaires were also able to hold their own better in this respect: They only lost about 2.2 percent.
Source: Infographic WORLD
The declines were most dramatic in Russia. Here the number of millionaires fell by 14.9 percent, from 228,000 to 194,000. At the same time, their wealth fell by 15.9 percent – a consequence of the attack on Ukraine and the sanctions imposed by the West.
Only in a few countries did the number of extremely well-to-do people increase last year – but they existed. Even in Europe: France recorded a 0.4 percent increase in the number of millionaires, and their total wealth fell by just 0.5 percent. “That’s because the economy grew a little faster there, the stock prices fell less and the real estate market was stable,” says Meyer.
Source: Infographic WORLD
The growth was much more pronounced in India and Indonesia in particular: there the number of millionaires increased by four and 6.4 percent, respectively, and their assets grew by 2.9 and five percent, respectively. Above all, the strong economic growth had an impact. There were also positive trends in countries rich in raw materials such as Saudi Arabia, Kuwait, Norway and Brazil.
All of these numbers are a snapshot based on data from the end of last year. A lot has happened since then, especially on the financial markets. The Share prices have recovered strongly, at least there were no further losses on the bond markets. On the other hand, real estate prices have fallen in many places. All in all, this should lead to the overall trend being reversed again this year. “If nothing dramatic happens in the second half of the year, there should be a plus again in 2023, both in the number of millionaires and in their assets,” says Meyer.
The long-term trend should therefore not be threatened. Because over the past eight years, both the number of millionaires and their assets have increased by an average of 5.1 percent – per year. The only downside: a million is now worth far less than it was in 2015. And if inflation stays as high as it was recently, it’s only a matter of time before we’re all millionaires.
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