In a recent report by Henley & Partners and New World Wealth, it was revealed that the United States has now surpassed China as the world’s top spot for millionaires and billionaires. The number of Americans with liquid investible assets of more than $1 million has seen a significant increase of 62% over the past decade, outpacing the global growth rate of 38%. Over the past five years, the population of millionaires in the U.S. has grown by 35%, which is almost double the growth rate of China.
At the top of the wealth ladder, the U.S. has a substantial lead over China. The U.S. boasts 9,850 centi-millionaires (those worth $100 million or more) compared to China’s 2,352. Additionally, the U.S. is home to approximately 788 billionaires, while China has 305. This divergence highlights the U.S.’s position as the world’s undisputed leader in private wealth creation and accumulation.
Factors Contributing to the Shift
According to the report, the strict Covid lockdowns in China, coupled with increased government intervention in the private sector, have slowed the growth in wealth creation in the country. This has resulted in a shift where the U.S. has benefited from the slowdown in China. Wealth migration patterns also reflect this change, with a net 13,500 Chinese millionaires leaving China in 2023, while the U.S. saw a net inflow of 2,200 millionaires in the same year.
America’s Leadership in Wealth Creation
The U.S.’s leadership in wealth creation is not only evident in the number of millionaires and billionaires but also in spending and investing. A report from UBS and Art Basel shows that the U.S. leads in global art sales, accounting for 42% of sales by value. Additionally, the U.S. dominates in sales of the highest-priced works. This shift in wealth creation is also reflected in luxury spending, with the U.S. outpacing China in luxury sales.
While analysts and economists predict that China will continue to be a major source of luxury and wealth growth in the coming years, the U.S. has solidified its position as both the dominant market and source of growth for the high-net-worth economy. The opportunities for wealth creation in the U.S. are described as unparalleled globally, cementing its status as a top destination for wealthy tech entrepreneurs and engineers.
The changing landscape of wealth distribution highlights the evolving dynamics of the global economy. With the U.S. surpassing China in the number of millionaires and billionaires, it is clear that the tides of wealth creation are shifting. The U.S.’s leadership in wealth accumulation and spending underscores its position as a powerhouse in the high-net-worth economy, with continued growth and opportunities on the horizon.