The United States has rapidly exceeded China as the top destination for millionaires and billionaires worldwide, according to a recent report. Over the past decade, the number of Americans with liquid investible assets exceeding $1 million has soared by 62%, surpassing the global growth rate of 38%. In the last five years alone, the millionaire population in the U.S. has expanded by 35%, nearly double the rate of China. Currently, the U.S. is home to 37% of the world’s millionaires, up from 35% in 2018. Moreover, the divergence becomes even more pronounced at the pinnacle of the wealth hierarchy, with the U.S. boasting 9,850 centi-millionaires and 788 billionaires, compared to China’s figures of 2,352 and 305, respectively.
Reasons Behind the Trend
Dominic Volek, the group head of private clients at Henley, attributes the U.S.’s wealth accumulation supremacy to China’s stringent Covid lockdowns and amplified government interference in the private sector, which have stymied wealth creation in the Asian country. Consequently, a net 13,500 Chinese millionaires departed the nation in 2023, setting a new record, while the U.S. experienced a net influx of 2,200 millionaires that year and is projected to welcome 3,500 more in 2024. The U.S. maintains its status as a magnet for affluent tech innovators and engineers, particularly from Asia, Europe, and the UK.
Impact on Spending and Investment
The United States’ leadership in wealth generation is manifesting in its spending and investment tendencies. A study from UBS and Art Basel reveals that the U.S. ranks first in global art sales, representing 42% of sales by value and leading in sales of the most expensive artworks. Contrarily, Bain predicts that China will account for only 35% to 40% of the global luxury goods market by 2030, marginally higher than current levels. China’s luxury spending remains about 40% beneath its 2019 levels, with luxury sales reaching $52 billion in China in contrast to $80 billion in the U.S. last year. Although China is anticipated to remain a substantial contributor to luxury and wealth growth in the future, the U.S. has established itself as the preeminent market and source of expansion for the high-net-worth economy. Analysts and economists concur that the U.S. presents unrivaled prospects for wealth creation globally.
The U.S.’s financial clout is evident on a global scale, with its supremacy in wealth accumulation, spending, and investment reinforcing its position as the epicenter of high-net-worth economic activities. As the United States continues to attract affluent individuals from around the world, its dominance in these realms is likely to persist in the foreseeable future.
Leave a Reply