Global Wealth Report 2024: Recovery Marks 4.2% Growth Led By EMEA Region
In 2023, global wealth rebounded by 4.2%, recovering from a 3% decline in the previous year. This recovery was driven by growth in Europe, the Middle East, and Africa (EMEA) at 4.8%, and Asia (APAC) at 4.4%. The contraction in 2022 was mainly due to currency effects, particularly a strong USD. With inflation slowing down, real growth outpaced nominal growth, leading to an inflation-adjusted global wealth increase of nearly 8.4%.
Despite a steady rise in global wealth since 2008, the rate of growth has slowed in almost all markets. The latest Global Wealth Report highlights several regional and demographic trends. Adults in EMEA were the wealthiest on average in 2023 with $166,000, followed by APAC with $156,000, and the Americas with $146,000. However, EMEA's average wealth grew at the slowest pace since 2008 at around 41%, compared to APAC's 122% and the Americas' 110% during the same period.
Regional Wealth Trends
APAC has seen the fastest overall wealth growth since 2008, increasing by nearly 177%. This rapid growth has been accompanied by a significant rise in debt, which has grown by over 192% during the same timeframe. In contrast, negative wealth growth in USD between the start of the second decade and 2023 was observed only in Greece, Japan, Italy, and Spain.
The United States has defied the trend of slowing growth over time within the Americas. The US increased its compound annual growth rate from 4% between 2000-2010 to 6% between 2010-2023. On an individual market level, Switzerland continues to lead in average wealth per adult, followed by Luxembourg, Hong Kong SAR, and the United States.
Wealth Distribution Insights
The biggest wealth increases in 2023 were seen in Türkiye (157%), Qatar, and Russia. Currently, the United States has the highest number of USD millionaires globally at 38%, followed by Mainland China and the UK. By 2028, it is forecasted that adults with over $1 million will increase in 52 of the 56 markets analyzed. Taiwan is expected to see a significant rise of about 50%.
A notable trend is that while average wealth is higher than median wealth across most markets studied, countries like UAE, Germany, Switzerland, Israel, and Mexico have shown stronger median wealth growth compared to average wealth since 2008. This suggests that individuals in lower wealth brackets have experienced faster wealth increases than those in higher brackets.
Although inequality has risen over time in fast-growing markets, it has decreased in several mature economies. Globally, there is a constant decline in adults within the lowest wealth bracket while other brackets are steadily expanding. According to the report's analysis on wealth mobility across different brackets and time horizons: "It is consistently likelier for people to climb up the wealth ladder than slip down it."
The report also forecasts that approximately $83 trillion will be transferred within two decades. A significant portion of this transfer will occur horizontally between spouses before moving to subsequent generations due to women's higher life expectancy. About $9 trillion of this transfer is expected to happen horizontally first.
Iqbal Khan from UBS Global Wealth Management stated: "Wealth needs careful stewardship and managing it properly needs time dedication and passion." He emphasized their role as a global wealth manager understanding shifts in both global and local contexts.
Robert Karofsky added: "Backed by thirty years of data...the Global Wealth Report crafts a clear picture of how wealth is created distributed transformed transferred." He highlighted how these insights benefit their clients.
Paul Donovan noted: "The world economy is embarking on a period of profound structural change...wealth is needed to finance investment...allow humanity planet thrive brave new world." He stressed knowing where how mobilizing effectively crucial.
The report underscores that despite challenges like currency fluctuations or regional disparities global wealth continues upward trajectory driven various factors including economic policies demographic shifts technological advancements among others ensuring sustained growth future years ahead.
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