Global Wealth Rises 4.6% In 2024; Americas Account For Over 11% Surge

The global economy witnessed a 4.6% expansion in wealth in 2024, continuing its upward trajectory following a 4.2% rise in the previous year. This growth, however, was not uniformly distributed across the globe. The Americas, led predominantly by North America, saw the majority of this increase, surpassing 11%.

Key factors such as a stable US dollar and robust financial markets played a significant role in this uptrend. In contrast, regions like Asia-Pacific (APAC) and Europe, the Middle East, and Africa (EMEA) experienced more modest growth rates, with APAC growing at below 3% and EMEA at less than 0.5%.

The latest Global Wealth Report unveils significant disparities in wealth growth across different regions and demographics. Adults residing in North America boasted the highest average wealth at $593,347 in 2024, with Oceania and Western Europe trailing at $496,696 and $287,688, respectively. Despite these figures, more than half of the 56 markets analyzed saw a real-term decline in the average wealth per adult, underlining the uneven distribution of global wealth growth.

Interestingly, Switzerland maintained its position at the top for average wealth per adult at a market level, leading ahead of the United States, Hong Kong SAR, and Luxembourg. Meanwhile, countries such as Denmark, South Korea, Sweden, Ireland, Poland, and Croatia experienced significant wealth increases, all recording double-digit growth rates in local currencies.

The number of individuals with assets worth $1 million or more increased by 1.2% in 2024, adding more than 684,000 millionaires globally, with the US alone contributing over 379,000 new millionaires. This surge reflects a broader trend observed over the past 25 years, where wealth across the world has consistently risen, showcasing a compound annual growth rate of 3.4% since 2000.

In a notable shift, the wealth band below $10,000 is no longer the most populous, overtaken by the bracket between $10,000 and $100,000. Looking ahead, projections suggest that the US, Greater China, Latin America, and Oceania will drive future growth in average wealth per adult over the next five years.

One remarkable development highlighted in the report is the rise of the EMILLI, or Everyday Millionaire, with investable assets ranging from $1 to 5 million. This group's numbers have quadrupled since 2000, reaching approximately 52 million globally by the end of last year. Holding close to $107 trillion in total wealth, the EMILLI segment demonstrates significant financial growth, benefitting from rising real estate values and favorable exchange rates.

The distribution of wealth also varies significantly across generations and regions. In the US, for instance, Millennials tend to allocate a larger portion of their assets to consumer durables and real estate, compared to Baby Boomers who possess over $83 trillion in net wealth. Globally, the US stands out for its preference for financial investments, Australia for real estate, and Singapore for insurance and pensions.

Over the next two to three decades, an estimated USD 83 trillion in wealth is expected to be transferred, with the US, Brazil, and mainland China poised for the largest transfers. This shift underscores the importance of strategic wealth management in navigating the complexities of the global financial landscape.

Niels Zilkens, Head Wealth Management Middle East at UBS Global Wealth Management, emphasized the Middle East's growing significance in the global wealth dynamic, noting the rise in millionaire numbers and median wealth, particularly in the UAE.

Iqbal Khan, Co-President of UBS Global Wealth Management, highlighted the criticality of understanding wealth creation trends amidst economic volatility.

Robert Karofsky, also Co-President at UBS Global Wealth Management, stressed the importance of managing wealth in a dynamic financial environment.

Lastly, Paul Donovan, Chief Economist at UBS Global Wealth Management, pointed to wealth's role as a social and political force, shaping opportunities, policies, and progress.

This examination of global wealth underscores the evolving landscape of wealth generation and distribution, highlighting the increasing importance of strategic financial planning and management across generations and regions.