The affluent strata of society has been dramatically transformed over the past ten years, as revealed by recent findings from New World Wealth and investment migration experts Henley & Partners. A steep increase in the number of centimillionaires, individuals holding a staggering $100 million or more in investable assets, has redefined the landscape of wealth concentration globally. The figures show that the number of centimillionaires surged 54% to a total of 29,350 individuals worldwide, with notable growth in both the U.S. and China.
The report emphasizes that both China and the United States have experienced a wealth boom that has set them apart from their European counterparts. Juerg Steffen, CEO of Henley & Partners, outlined a stark contrast in performance, noting that China’s centimillionaire population expanded by an astonishing 108% from 2013 to 2023, surpassing the U.S. growth of 81%. This dramatic increase in wealthy individuals has been predominantly attributed to the rise of tech entrepreneurs and industrial magnates within China’s fast-paced economic environment. Currently, 2,350 centimillionaires reside in China, marking the nation as a critical player in the global economic sphere.
However, the momentum seems to have cooled in more recent years. The Chinese economy has faced challenges, largely due to a burgeoning property sector crisis and persistent unemployment rates, which have led to weak domestic consumption. Wealth analyst Andrew Amoils points out that while growth was vigorous until 2020, the subsequent years have seen a modest increase of around 10% in the ultra-rich population. This raises questions about the sustainability of such rapid growth in wealth amidst current economic difficulties.
Looking towards the future, cities like Hangzhou and Shenzhen are identified as potential growth hotspots, especially in terms of cultivating a strong tech landscape. Set against a backdrop of robust GDP growth—6.9% for Hangzhou and 5.9% for Shenzhen in early 2024—these cities are projected to witness an exceptional increase in centimillionaire populations, with estimates suggesting growth rates of 150% by the year 2040. The report notes that despite the overall sluggish growth in established European markets—where cities like Zurich, Chicago, and Moscow may see less than 50% growth—there is significant potential among emerging economies and cities in Asia and the Middle East.
In a compelling turn, both the U.S. and China are anticipated to exceed a global average growth rate of about 75% for centimillionaires by 2040. Alongside existing affluent cities, emerging locales such as Taipei, Dubai, and Bengaluru also promise substantial growth, indicating a geographic shift in wealth concentration.
The upcoming U.S. presidential elections emerge as a pivotal factor that could sway wealth mobility and growth trends. David Young, president of the Committee for Economic Development at The Conference Board, underscores the importance of political leadership on fiscal, monetary, and economic policies, which directly impact centimillionaire growth. The anxiety surrounding political outcomes has now led to a surge in affluent Americans exploring alternative residency and citizenship options, signaling a shifting landscape in wealth accumulation.
This political dimension, coupled with economic indicators, adds layers of complexity to the ultra-wealthy narrative. While the portrayal of wealth may seem like a linear narrative of growth, it is, in reality, a multifaceted interplay of economic performance and socio-political factors.
The last decade’s trends reveal a shifting paradigm in global wealth, characterized by unprecedented growth among centimillionaires particularly in Asia and the U.S. These trends are not just about numbers; they reflect profound economic and social transformations that warrant scrutiny. The rise of wealth in certain geographic locales signals potential opportunities as well as challenges. Ultimately, as we look towards the future, understanding how these trends develop further will be critical in navigating the ever-evolving landscape of ultra-wealth. The affluent elite may continue to thrive, but the undercurrents of economic volatility, political change, and emerging markets will undoubtedly shape their trajectories.