A version of this article first appeared in CNBC’s Inside Wealth newsletter by Robert Frank, a weekly guide for high-net-worth investors and consumers. sign up Receive future editions directly to your inbox.
The United States is rapidly overtaking China as the world’s top spot for billionaires and billionaires, according to a new report.
According to Henley & Partners and New World’s 2024 U.S. Wealth Report, there are now more than 5.5 million Americans with liquid investment assets of $1 million or more, an increase of 62% over the past 10 years and faster than the global growth rate. This is significantly higher than 38%. wealth.
Over the past five years, America’s billionaire population has grown by 35%, nearly twice as fast as China. The United States is now home to 37% of the world’s billionaires, up from 35% in 2018.
At the top of the wealth ladder, the divergence becomes even greater. The United States has 9,850 centimillionaires worth more than $100 million, compared to 2,352 in China. There are approximately 788 billionaires in the United States and 305 billionaires in China.
According to the report, “The United States remains the undisputed world leader in private wealth creation and accumulation.”
Dominik Volek, Head of Private Clients at Henley, said China’s strict coronavirus lockdown and increased government intervention in the private sector were slowing wealth creation growth.
“These factors have certainly slowed China down considerably, and the United States has benefited from that,” he said.
The shift from China to the United States is also reflected in patterns of wealth movement. In 2023, a net of 13,500 Chinese billionaires will leave China, setting a new record. According to Henry’s report, the net inflow of billionaires to the United States is expected to be 2,200 in 2023 and 3,500 in 2024.
“The United States remains the most attractive country for wealthy technology entrepreneurs and engineers, particularly from Asia, Europe, and the United Kingdom,” the report states.
America’s leadership in wealth creation is spilling over into spending and investment. The U.S. is the world leader in art sales, accounting for 42% of sales by value, according to a UBS and Art Basel report. The United States also leads the world in sales of the most expensive works.
Bain currently predicts that China will account for only 35% to 40% of global luxury goods consumption by 2030, a modest increase from current levels. Overall luxury spending in China is down about 40% compared to 2019, according to Bain. According to Bain research, U.S. luxury goods sales totaled $80 billion last year, compared to $52 billion in China.
Analysts and economists say China will remain a major source of luxury goods and wealth growth in the coming years, while the United States remains the dominant market and source of growth for wealthy economies. There is.
“Wealth creation opportunities in the United States are unparalleled worldwide,” Volek said.
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