The global population of the ultra-wealthy has soared to unprecedented heights, with their investments in booming stock markets driving their collective wealth to new records, according to a recent study by Capgemini Research Institute.
The number of high-net-worth individuals (HNWIs) – those with liquid assets of at least $1 million – increased by 5.1 percent last year, reaching a total of 22.8 million.
Their cumulative wealth skyrocketed to $86.8 trillion in 2023, marking a 4.7 percent rise from the previous year, based on findings from the annual World Wealth Report. Both the number of HNWIs and their total wealth are the highest since Capgemini began the study in 1997.
The fortunes of these wealthy individuals have been significantly bolstered by surging stock markets. New York’s tech-heavy Nasdaq index surged 43 percent in 2023, while the broad-based S&P 500 gained 24 percent. In Europe, the Paris CAC 40 grew 16 percent, and the Frankfurt DAX advanced by 20 percent.
This growth comes after a challenging 2022, where the number of HNWIs and their wealth each declined by over three percent due to macroeconomic uncertainties and geopolitical tensions. This decline was the steepest in a decade, largely driven by falling equity markets.
“However, 2023 brought economic growth and improved fortunes for major investment sectors to reverse the falloff,” the report noted. “Despite ongoing interest rate uncertainty and rising bond yields, equities surged along with the tech market, fueled by enthusiasm for generative AI and its potential impact on the economy.”
The sharp increase in wealth among the world’s richest has intensified debates about economic inequality and the need for the super-rich to pay more taxes.
Brazil and France are among the countries advocating for a global minimum tax on the wealthiest individuals, a proposal gaining traction among G20 nations.
The rising wealth disparity raises critical questions about the sustainability of such concentrated wealth and its implications for global economic stability.
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