Recovery, Regional Growth, and Future Trends

This report paints a picture of a world where wealth is growing, but at different rates across regions, and where inequality remains a complex issue. It underscores the dynamic nature of wealth, with significant mobility within wealth brackets, but also highlights the concentration of wealth at the top. The future outlook suggests continued growth, particularly in emerging markets, but also raises questions about the sustainability of debt-fueled wealth increases in regions like Asia-Pacific.

1. Global Wealth Recovery:
   • Global wealth rebounded in 2023, growing by 4.2% in USD terms after a 3% decline in 2022.
   • The recovery was driven primarily by Europe, the Middle East, and Africa (EMEA), with a growth of 4.8%, followed by Asia-Pacific (APAC) at 4.4%, and the Americas at 3.6%.
2. Wealth Distribution:
   • The proportion of adults in the lowest wealth band (less than USD 10,000) almost halved between 2000 and 2023.
   • The middle wealth band (USD 10,000 to USD 100,000) more than doubled during this period.
   • The number of millionaires increased significantly, with the United States hosting nearly 22 million, representing 38% of the global total.
3. Regional Wealth Trends:
   • Since 2008, wealth in the Asia-Pacific region has grown by nearly 177%, while the Americas saw a growth of 146%. In contrast, EMEA lagged with a growth of just under 44%.
   • Debt in the Asia-Pacific region also surged by over 192% since 2008, compared to 49% in the Americas and only 9% in EMEA.
4. Wealth Inequality:
   • Inequality has increased in fast-growing markets but has decreased in several developed economies. For instance, wealth inequality rose by nearly 23% in Singapore but decreased by 5.4% in Germany.
5. Future Projections:
   • By 2028, the number of adults with wealth exceeding USD 1 million is expected to rise in 52 out of 56 markets analyzed, with significant increases projected in Taiwan (up to 50%) and Korea (over 25%).
   • This report predicts that emerging economies' share of global wealth will exceed 30% in 2024 and rise to nearly 32% by 2028.

The Global Wealth Report 2024 and the global wealth trends

1. Global Wealth Recovery and Growth:

• Rebound from 2022: After a decline in 2022, global wealth rebounded by 4.2% in 2023. This recovery is significant as it suggests resilience in global markets, despite recent economic challenges.
• Regional Variations: The growth was not uniform across the world. Europe, the Middle East, and Africa (EMEA) led the recovery with a 4.8% increase, followed by Asia-Pacific (4.4%) and the Americas (3.6%).

2. Wealth Distribution and Mobility:

• Shrinking Lowest Wealth Band: The proportion of adults with less than USD 10,000 in wealth nearly halved since 2000, indicating significant upward mobility. More people are moving into higher wealth brackets, particularly into the USD 10,000 to USD 100,000 range, which has more than doubled.
• Increasing Millionaires: The number of millionaires has grown dramatically, especially in the United States, which hosts nearly 22 million millionaires. This reflects both economic growth and wealth concentration.

3. Regional Wealth Trends:

• Asia-Pacific's Growth: Wealth in Asia-Pacific has increased by 177% since 2008, driven by both financial and non-financial assets. However, this growth has been accompanied by a significant rise in debt, raising concerns about sustainability.
• Debt Growth: The substantial increase in debt in Asia-Pacific (192%) compared to EMEA (9%) and the Americas (49%) suggests that much of the region's wealth growth is debt-fueled, which could pose risks if economic conditions deteriorate.

4. Wealth Inequality:

• Mixed Trends in Inequality: While inequality has risen in some fast-growing markets like Singapore (up 23%), it has decreased in others, such as Germany (down 5.4%). This shows that wealth growth does not always correlate with increasing inequality.
• Global Wealth Pyramid: A small percentage of the global population (1.5%) controls a large share of wealth (47.5% of global wealth), highlighting the significant concentration of wealth at the top.

5. Future Projections:

• Increase in Millionaires: The number of millionaires is expected to continue rising in most markets. By 2028, the number of millionaires is projected to increase by up to 50% in Taiwan and over 25% in Korea.
• Emerging Markets: The share of global wealth held by emerging economies is expected to exceed 30% in 2024 and continue growing to nearly 32% by 2028. This indicates a shift in global wealth dynamics, with emerging markets playing an increasingly important role.