Skyrocketing Riches: The Soaring Wealth of the Rich Reaches New Heights
Record-breaking riches among the affluent reach unprecedented heights
Sound the trumpets, the wealthy are growing richer than ever! A report by Capgemini shows that the total wealth of high-net-worth individuals, those with over a million dollars, has surged by a staggering 4.2% in just one year. And if that wasn't impressive enough, the number of these fabulously wealthy folks has never been higher.
Capgemini, a renowned consulting firm, defines high-net-worth individuals as those who have over a million dollars (excluding the primary residence). The number of these super-rich individuals rose by a substantial 2.6% to an astonishing 23.4 million in 2024.
Millionaires Galore in the Land of the Free
The bulk of this growth can be attributed to the ultra-wealthy, those with over 30 million dollars. The total wealth of these bigwigs skyrocketed to an eye-popping 90.5 trillion dollars. Both the number and the wealth of the rich are at record-breaking levels, with Capgemini publishing this study since 1997.
The USA took the cake with an additional 562,000 millionaires, a whopping 7.6% growth. The country now boasts almost eight million millionaires, primarily due to the rise in stock prices, Capgemini's report reveals.
Stagnation in Europe, a Contrast to the USA
However, the picture wasn't as rosy in Europe. The continent witnessed a 2.1% decrease in wealthy individuals, primarily due to economic stagnation in major economies like France, which shed about 21,000 millionaires in a year. On the flip side, the number of ultra-wealthy Europeans increased by a robust 3.5%. This suggests a concerning trend of increasing wealth concentration.
Millionaire Shortage in Germany
Germany, despite a virtually unchanged total wealth of 6.32 trillion dollars among the rich, experienced a decrease in the number of dollar millionaires. Capgemini attributes this to falling real estate prices.
The Capgemini 'World Wealth Report' Insights
Capgemini's 'World Wealth Report', established since 1997, considers stocks, bonds, alternative investments, cash, and real estate (excluding the main residence). Art collections and consumer goods like cars and jewelry are not included. The analysis covers 71 countries, accounting for over 98% of global GDP and 99% of global market capitalization. Additionally, the report surveyed 6,472 dollar millionaires about their investment strategies.
The rise in income inequalities has spurred debates about more effective ways to tax the highest wealth. The report remains tight-lipped about specific factors contributing to wealth growth in the USA and Europe, recommending a deeper dive into the extensive analysis provided in Capgemini's comprehensive 'World Wealth Report'.
Sources: ntv.de, gho/dpa/AFP
- Wealth
- Millionaires
- USA
- Germany
Enrichment Insights:
Capgemini's report suggests that global wealth and the population of high-net-worth individuals (HNWIs) grew in 2024, with the USA outperforming other regions. The report does not specify the exact contributing factors for these growth trends. However, it is generally understood that factors like strong economic performance, technology sector growth, and strategic investment decisions play a significant role in wealth creation and growth in regions like North America.
Additionally, the report highlights a shift amongst younger HNWIs towards offshore investments, driven by factors such as better tax conditions, investment opportunities, and stronger market access. On a global scale, frothy tech returns have contributed significantly to minting new millionaires.
- The enrichment insights from Capgemini's report indicate a growth in global wealth and the population of high-net-worth individuals in 2024, with a significant performance by the USA.
- Factors such as strong economic performance, technology sector growth, and strategic investment decisions are believed to contribute significantly to wealth creation and growth in regions like North America.
