A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide for high-net-worth investors and consumers. Sign up To receive future editions delivered directly to your inbox.
The United States has quickly overtaken China as the country with the highest number of millionaires and billionaires in the world, according to a new report.
According to statistics, there are currently more than 5.5 million Americans with more than $1 million in liquid investable assets, which has grown by 62% in the past decade, much higher than the global growth rate of 38%. 2024 U.S. Wealth Report From Henley & Partners and New World Wealth.
In the past five years, the number of millionaires in the United States has increased by 35%, almost twice that of China. The United States now has 37% of the world’s millionaires, up from 35% in 2018.
At the top of the wealth ladder, the difference is even greater. The United States has 9,850 millionaires (worth $100 million or more), while China has 2,352. The United States has approximately 788 billionaires, while China has 305.
“The United States remains the world’s undisputed leader in private wealth creation and accumulation,” the report said.
Dominic Volek, head of Henley Private Client Group, said China’s strict COVID-19 lockdown measures, coupled with increased government intervention in the private sector, have led to a slowdown in wealth creation.
“China has definitely slowed down a lot because of these factors, and the United States has benefited from that,” he said.
The shift from China to the United States is also reflected in wealth migration patterns. In 2023, a net 13,500 Chinese millionaires will leave China, setting a new record. According to the Henry Report, there will be a net inflow of 2,200 millionaires in the United States in 2023 and an expected inflow of 3,500 millionaires in 2024.
“The United States remains the biggest draw for wealthy technology entrepreneurs and engineers, especially from Asia, Europe and the United Kingdom,” the report said.
America’s leadership in wealth creation is spilling over into spending and investing. A Report Research from UBS and Art Basel found that the United States is the global leader in art sales, accounting for 42% of total sales. The United States also leads the world in sales of the highest-priced works.
Bain currently predicts that by 2030, China’s luxury goods consumption will account for only 35% to 40% of global luxury goods consumption, only a slight increase from the current level. According to data from Bain & Company, China’s overall luxury consumption dropped by approximately 40% in 2019. Bain found that luxury goods sales in the United States totaled $80 billion last year, compared with $52 billion in China.
While analysts and economists say China will remain the main source of luxury goods and wealth growth in the coming years, the United States has become the dominant market and source of growth for the high-net-worth economy.
“The opportunity for wealth creation in the United States is second to none in the world,” Wallack said.
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