The Strategist

Number of super-rich people grows by 6.4% worldwide in 2019

03/05/2020 - 07:34

According to Knight Frank consulting company, in 2019 number of people with net wealth of $ 30 million and above grew by 6.4% despite the slowdown in economic growth. Now there are more than 513 thousand of them around the world.

In 2019, another 31 thousand people with net worth of $ 30 million or more appeared in the world. The growth was 6.4%. As Knight Frank consulting company noted in its annual Wealth Report, “2019 was a hectic year from an economic point of view, the International Monetary Fund even lowered its forecast for global GDP growth from 3.5% in January 2019 to 2,9% in January 2020, and this is the minimum figure for the last ten years.” However, despite global economic problems, 63% of wealthy clients property managers surveyed reported an increase in their clients' capital in 2019. Only 11% reported the opposite.

Experts explain this seemingly controversial growth by the fact that a significant part of the investment portfolios of super-rich people are securities (an average of 23%), and the securities markets, including stock exchanges, have been actively growing in 2019.

In addition, real estate and precious metals have risen in price, investments in which also make up a significant part of the portfolio of super-rich.

Thus, the results of 2019 showed that 513,244 people live in the world with a fortune of $ 30 million or more, which is more than the entire population of some countries, for example, Iceland. Most of these people live in the United States: 240,575 super-rich have American citizenship. This is twice as much as in all of Europe.

The second place in the ranking is occupied by China (61 587 super-rich people). The top 10 also includes Germany (23 078), France (18 776), Japan (17 013), Great Britain (14 367), Italy (10 701), Canada (9325), Russia (8924), Switzerland (8395).

Knight Frank forecasts by 2024, the total number of super-rich people in the world will grow by 27% to 649 thousand.

In this case, Asia will overtake Europe. In this region, the number of super-rich people in five years will grow by 44% - there will be almost 149 thousand super-rich. However, North America will still be ahead: there will be 22% more super-rich in the United States by that time, that is, more than 293 thousand. Plus, there will be almost 12 thousand Canadian citizens with extra-large net wealth.

The list of countries where the number of super-rich people will increase especially rapidly in the next five years includes India (73%), Egypt (66%), Vietnam (64%), China (58%), Indonesia (57%), Tanzania (54%), Romania (42%).

The report also evaluates the cities of the world in terms of how convenient they are for super-rich people to live, invest and do business. The most convenient was New York, which pushed to second place London, its eternal rival in this area. The top 10 included Paris, Hong Kong, Los Angeles, Chicago, Singapore, Beijing, Madrid and Washington (DC).