High Net Worth Individuals Saw a Decrease in Wealth
A recent report by Capgemini indicates that the world’s wealthiest individuals experienced a decline in their overall wealth.
The report reveals that the richest individuals saw a 6% decrease in their wealth, which made up a significant portion of the global wealth reduction.
The ultra-rich, defined as those with assets worth $30 million or more, saw a 4% reduction in their numbers and a 6% decrease in their wealth, contributing to around 75% of the total global wealth decline. Individuals categorized as “mid-tier millionaires,” with assets ranging between $5 million and $30 million, accounted for the second-largest decline in wealth, representing 20% of the global decrease. Meanwhile, the group known as the “millionaire-next-door” segment, with assets between $1 million and $5 million, were the least impacted by the global wealth decrease.
Concerning the distribution of wealth loss among individuals, the losses were primarily concentrated among the top few. The “millionaire-next-door” group comprises 90% of all high net worth individuals, indicating that most of the wealth loss was attributed to the top 10% of millionaires. On a national scale, China’s ultra-rich led the decline in wealth, with Chinese high net worth individuals contributing to 25% of the total wealth reduction among HNWIs globally. Other regions also experienced wealth losses, except for the Middle East, which saw an increase in both the number of HNWIs and their wealth. The Middle East countries benefited from robust GDP growth and a strong performance in financial markets, witnessing a 6% rise in HNWI population and a 4% increase in their wealth. Overall, the global HNWI population decreased by 2%, with a 5% decline in their collective wealth.
