A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide for wealthy investors and consumers. Sign up to receive future issues straight to your inbox.
The US has quickly overtaken China as the world leader in millionaires and billionaires, according to a new report.
According to the 2024 USA Wealth Report from Henley & Partners and New World, there are now more than 5.5 million Americans with liquid investable assets of more than $1 million, an increase of 62% over the last decade and well above the global growth rate of 38% wealth.
Over the past five years, the number of millionaires in the United States has grown by 35%, almost twice as fast as in China. The United States is now home to 37% of the world’s millionaires, up from 35% in 2018.
At the top of the wealth scale, the divergence increases. There are 9,850 centi-millionaires – those worth $100 million or more – in the US, compared to 2,352 in China. There are around 788 billionaires in the USA and 305 in China.
“The U.S. remains the world’s undisputed leader in private wealth creation and accumulation,” the report said.
Dominic Volek, group head of private clients at Henley, said the strict Covid lockdowns in China coupled with increased government intervention in the private sector had slowed the growth of wealth creation.
“China has certainly slowed significantly because of these factors, and the U.S. has benefited from that,” he said.
The shift from China to the US is also reflected in wealth migration patterns. In 2023, a net 13,500 Chinese millionaires left China, setting a new record. According to the Henley report, the U.S. saw a net inflow of 2,200 millionaires in 2023 and a projected inflow of 3,500 in 2024.
“The US remains a top draw for wealthy tech entrepreneurs and engineers, particularly from Asia, Europe and the UK,” the report said.
America’s leadership in wealth creation extends to spending and investment. A report from UBS and Art Basel finds that the United States leads the way, accounting for 42% of global art sales. The USA is also the world leader in sales of the most expensive works.
Bain now predicts that China will account for just 35 to 40 percent of global luxury goods consumption by 2030, representing only a slight increase from current levels. According to Bain, total luxury spending in China is about 40% below 2019 levels. According to Bain, luxury sales in the U.S. totaled $80 billion last year, compared to $52 billion in China.
While analysts and economists say China will still be a major source of luxury and wealth growth in the coming years, the US has become both the dominant market and source of growth for the high net worth economy.
“Wealth creation opportunities in the U.S. are unmatched in the world,” Volek said.
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2024-03-22 16:57:55
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