There are more millionaires in the world than ever before as buoyant equity markets, stability in the industrialised economies of the US and Europe and supportive central bank monetary policy have driven global private wealth to a record $152 trillion.
The total number of millionaire households reached 16.3 million in 2013 - up strongly from 13.7 million in 2012 - according to Boston Consulting Group, the management consultants. Global private wealth grew 14.6 per cent from $132.7 trillion in 2012 to $152 trillion in 2013.
Since the 2008 financial crisis, global private wealth has grown 65 per cent, or $60 trillion, from $92.4 trillion as markets and industrialised economies have recovered from the instability sparked from the collapse of Lehman Brothers and fears that the global banking system was imploding.
The number of millionaire households in the world represents 1.1 per cent of all households, up from 0.7 per cent in 2007.
The US had the highest number of millionaire households (7.1 million) as well as the highest number of new millionaires (1.1 million). The highest density of millionaire households was Qatar (175 out of every 1,000 households) followed by Switzerland (127) and Singapore (100).
Strong equity markets boosted the industrialised economies, which have large existing asset bases, enabling them to match the rapid asset growth in emerging market economies, which rely more on new wealth creation spurred by growth and high savings rates.
For example, private wealth grew by double digits in the US and Australia, while some emerging markets, such as Brazil, experienced much weaker growth. China strengthened its position as the second-wealthiest nation after the US.
All big stock indices rose in 2013 amid relative economic stability in Europe and the US, and signs of recovery in economies hit hard by the euro zone crisis, such as Ireland, Spain and Portugal.
Despite the tapering of quantitative easing in the US, monetary policy by central banks was generally supportive, which also boosted private wealth.
Private wealth in the US stood at $46 trillion in 2013, twice as much as China with $22 trillion. Japan was in third place with $15 trillion, the UK fourth with $8 trillion and Germany fifth with $7 trillion. Projections for 2018 show that China is expected to experience the greatest expansion of private wealth.
Boston Consulting Group forecasts Chinese private wealth will grow 84 per cent to $40 trillion by 2018, although it will still remain in second place behind the US, where private wealth is forecast to rise 17 per cent to $54 trillion by 2018.
Financial Times
