The number of super wealthy people across the world increased in 2020, despite the COVID-19 pandemic. With lower interest rates and tax cuts, asset prices have surged, growing the world’s UHNWI population or individuals with a net worth of $30 million or more, by 2.4% YoY to more than 520,000.
The increasing trend is expected to continue in the following years, with the figure rising by another 27% by 2025. However, some countries are set to witness more impressive growth than others.
According to data presented by Stock Apps, Indonesia and India are expected to witness more than 60% growth of super rich population in the next four years, the biggest increase globally.
Poland and Sweden the Fastest Growers in Europe
According to Knight Frank’s 2021 Wealth Report, Asia saw the most significant growth in the number of super wealthy individuals amid the COVID-19 pandemic. Their number rose by 12% YoY to almost 117,000 in 2020. Asia is also set to witness the fastest growth in UHNWIs by 2025, with the figure increasing by 25% to 169,000, nearly as many as Europe.
Statistics show Indonesia and India are expected to witness the biggest growth in the Asia Pacific region and globally, with their UHNWI populations surging by 67% and 63%, respectively. New Zealand follows with a 52% growth in five years.
More than 151,600 super wealthy individuals, or 30% of the world’s richest population in 2020, were from Europe, a 1% increase in a year. The fastest growers in Europe, Poland, and Sweden are forecast to increase their UHNWI populations by around 60% by 2025.
The top country for UHNWI growth in Africa, Zambia, is expected to see a 40% growth in this period.
The world’s dominant wealth hub over a five-year forecast period, the United States, is not expected to grow its super rich population this fast. In 2020, 190,000 or 36% of all super rich people were from North America, a 4% increase in a year. By 2025, the UHNWI population in the US and Canada is expected to rise by 23% and hit around 240,000.
China Saw the Biggest Increase in Super Rich Population in 2020, Greece the Biggest Faller
Statistics show that in 2020, 42% of the world’s millionaires were located in North America. Europe and Asia followed with 29% and 22%, respectively.
However, the global billionaire list showed a different ranking. Around 36% of the world’s billionaires in 2020 were from Asia, compared to 31% from North America. The Chinese Mainland is the key to this phenomenon, with 246% forecast growth in very wealthy residents in the decade to 2025. Europe ranked third with an 18% share, and only 6% of billionaires were from the Middle East.
In global comparison, China saw the most significant increase in super rich population in 2020, with the number growing by 16% in a year. Sweden ranked second with an 11% increase. Singapore, Saudi Arabia, and Switzerland followed with 10% and 9% growth, respectively.
Greece was on the other side of the list, with its UHNWI population shrinking by 33% in 2020. The United Arab Emirates, Turkey, and Spain were also on the list of the biggest fallers, with their super rich populations falling by 22%, 20%, and 14%, respectively.