As we progress toward 2030, upward wealth mobility is expected to become more pronounced globally, with signs of horizontal wealth transfer emerging, according to the 2024 Global Wealth Report from UBS.
In 2023, global wealth growth rebounded by 4.2%, recovering from a 3% contraction in 2022, which was mainly due to currency effects, particularly a strong US dollar.
This rebound was driven by growth in Europe, the Middle East, and Africa (EMEA) at 4.8%, and Asia-Pacific (APAC) at 4.4%.
In 2023, millionaires already accounted for 1.5% of the adult population we analysed. The United States had the highest number, at nearly 22 million people (or 38% of the total).
Mainland China was in second place with just over six million – roughly double the number of the United Kingdom, which came third.
South Africa is reported to have nearly 90,600-dollar millionaires – approximately 0.23% of the adult population. A 2024 report from
Henley & Partners
puts the number of individuals with wealth of $1 million or more at 37,400, 102 centi-millionaires, and five billionaires.
By 2028, the number of adults with wealth of over $one million will have risen in 52 of the 56 markets.
Inflation eats away at wealth year in, year out. Indeed, since 2008, real wealth has grown by half a percentage point less per annum than nominal figures suggest, namely by nearly 4.7% vs. just over 5.2%.
Türkiye stands out with a staggering growth of over 157% in wealth per adult between 2022and 2023, leaving all other nations far behind.
The closest are Qatar and Russia with an increase close to 20%, followed by South Africa with just over 16% and Israel with 14%.
As inflation slowed, real growth exceeded nominal growth in 2023, resulting in an inflation-adjusted global wealth increase of nearly 8.4%.
Despite steady global wealth growth since 2008, the pace has slowed in almost all markets.
The latest
Global Wealth Report
, now in its fifteenth year, highlights the following regional and demographic themes:
Wealth Mobility
The report shows that across all wealth brackets and time horizons, individuals are more likely to climb the wealth ladder than to slip down it.
About one in three individuals moves into a higher wealth band within a decade, and over a thirty-year period, the chance of escaping the lowest wealth bracket rises to over 60%.
Additionally, approximately $83 trillion is expected to be passed on within the next two decades, equivalent to the value of all global economic activity in a single year.
A notable amount of this wealth will move horizontally between spouses before transferring to the next generation.
This transfer, primarily benefiting women due to their higher life expectancy, is significant in the Americas, with about $9 trillion expected to be passed on horizontally.