A new report shows the rich collectively own 47 percent of global wealth, and their fortunes keep climbing.
(Mirror Daily, United States) – According to Boston Consulting Group, the numbers of millionaires are still rising despite the stalling economic growth, and they currently own 47 percent of the global wealth. Analysts expect that figure to rise to 52 percent by 2020.
Additionally, the world’s rich thrived last year although the pace at which their fortunes grew was slightly slower than a year prior. And people who reached the ranks of millionaires were more numerous in 2015, the report shows.
Private global wealth, which doesn’t include property, rose 5.2 percent last year to $168 trillion. In 2014, privately held global wealth rose by 7 percent. Analysts believe that poor performing stock markets and stalling GDP growth worldwide may be to blame.
In 2015, the increase of global wealth was triggered by the arrival of new millionaires rather than by the existing fortunes, Boston Consulting researchers said. But the region with the largest numbers of nouveau riches is Asia, where the combined wealth of the rich grew 13 percent last year.
In the U.S., on the other hand, the wealthy got richer at a slower pace: 2 percent last year from a 6 percent the previous year. Western Europe didn’t fare better either with its 4 percent growth in 2015.
Analysts expect global wealth to grow over the next five years while being fueled by the existing assets in the U.S. and Japan and by new wealth in the emerging markets. Economists pinpointed that the global economic meltdown seems to have spared the rich, whose numbers are paradoxically growing.
Last year, the number of millionaires grew 6 percent worldwide. The report revealed that 47 percent of global wealth is now in the hands of millionaires, which make up just 1 percent of the world’s population. The countries with the largest numbers of new millionaires are China and India despite their populations still struggling with enormous income inequalities.
The countries with the most millionaires per capita remain Lichtenstein and Switzerland, two European countries renown for their high-performing banking systems.
The report also shows that the richest of the rich benefited the most from increases in wealth. The ultra-rich, or those who own more than $100 million, saw a rise in their fortunes by 7 percent last year. In Asia, the ultra-rich boosted their wealth by a staggering 21 percent over the same period, according to the report.
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