For the first time since 2018, the number of multimillionaires worldwide fell

According to Wealth-X researchers, in 2022, for the first time in recent years, the number of multimillionaires (ultra high net worth – UHNW, worth over $30 million) has decreased worldwide. The main reasons, the researchers name last year’s lockdowns in China and the armed conflict in Ukraine, which led to a record increase in inflation and a decrease in stock indices. The only major country where the number of multimillionaires rose last year was India.

The research company Wealth-X (part of the Altrata group) has published annual report on the number of owners of a fortune over $30 million (ultra high net worth – UHNW). At the end of 2022, there were 395,070 people with a very large fortune worldwide, which is 5.4% less than in 2021. Their combined wealth also fell by 5.5% to $45.4 trillion. The decline in the number of UHNWs was a record since 2015.

The authors of the report note that “2022 was characterized by extreme volatility, a surge in commodity prices, anti-COVID lockdowns in China and rising geopolitical tensions around the world.” Rising inflation has led regulators around the world to take drastic measures to tighten monetary policy by sharply raising interest rates, which, in turn, led to the revaluation of many assets in the stock market and increased tension in the capital market.

A noticeable reduction in activity occurred in the bond market. All this has led to a reduction in the number of multimillionaires in all regions of the world. The only exceptions were Latin America (+17.5%, up to 11,650 people) and the Middle East (+15.7%, up to 21,640 people), largely due to higher prices for oil, gas and other commodity assets, which are actively traded by many countries in these regions.

In the largest regions in terms of the number of multimillionaires, the situation is different. In North America, where they live 36.2% of the global number, multimillionaires decreased by 4% last year – 142,990 people. In Asia (share of 27.4% of the total), the number of multimillionaires fell by 10.9% last year to 108,370 people. In Europe (global share 25.5%), the number of UHNWs fell by 7.1% to 100,850. In North America, the main reason for the negative dynamics was the decline in stock indices due to the tightening of the Fed’s monetary policy in the fight against inflation.

There are fewer rich people in Asia, largely due to China, where the hard lockdowns of 2022 hit the business of many companies and the economy as a whole. Europe, on the other hand, experienced an inflationary blow from a surge in energy prices after the start of a large-scale military conflict in Ukraine.

The number of multimillionaires has declined in almost all countries/jurisdictions in the world’s top ten in terms of their number. The most significant decline was recorded in Japan (by 21.9%), Hong Kong (by 23%) and France (by 11.9%). In the United States, which ranks first in the world in terms of the number of multimillionaires, in 2022 their number decreased by 4.3%, to 129,665 people. In China (second place in the world) – less by 7.1%, to 47,190 people. In Germany (third place in the world) – less by 9.3%, to 19,590 people.

The only country in the top 10 with more multimillionaires in 2022 was India, up 3.2% to 8,800, with a combined wealth of $1.144 trillion. Wealth-X experts attribute this to “large infrastructure development projects in India, strong consumer demand and capital inflows into the economy.”

Speaking about the cities where the largest number of multimillionaires in the world live, the authors of the report note that, despite a noticeable decrease (-23%), Hong Kong retained the first place at the end of the year (12,615 people). New York is in second place (+2.3%, up to 11,845 people), London is in third (-6.5%, up to 6,370 people). Also in the top 10 are cities such as Los Angeles, San Francisco, Chicago, Singapore, Paris, Tokyo and Washington.

The Wealth-X report does not say how many people with a fortune over $30 million lived in Russia in 2022.

As for the billionaires, in May the researchers reportedthat at the end of 2022 their number in Russia increased by 4.7%, to 112 people, and their total wealth increased by 1%, to $479 billion.

Evgeniy Khvostik