According to UBS’s 2024 global wealth report, approximately one in 15 Americans had wealth exceeding $1 million last year. Despite a decrease from 22.7 million millionaires in 2022 to a lower figure in 2023, the U.S. still houses 38% of the world’s millionaires. This indicates that even with the dip, the U.S. remains a dominant hub for wealthy individuals on a global scale.
This substantial number of U.S. millionaires, though slightly reduced, is over three times that of mainland China, which has the second-highest millionaire population. The number of U.S. millionaires is comparable to the combined totals of Western Europe and China, underscoring the significant concentration of wealth within the United States.
Globally, the millionaire population decreased from 59.4 million in 2022 to 58 million in 2023. This decline reflects a challenging economic environment, yet it is coupled with a notable 4.2% increase in global wealth, marking a recovery from the previous year’s downturn—the first drop since the 2008 financial crisis. The bounce back in global wealth signifies resilience and an overall positive trajectory in wealth accumulation.
In 2022, global wealth fell by 3%, causing 3.5 million people to lose their millionaire status. This was largely due to high interest rates and inflation impeding economic growth, leading to a challenging financial landscape for many. The UBS report characterizes this decline as a temporary setback, noting that wealth has already rebounded, aligning with a long-term upward trend in global wealth.
UBS projects continued growth in the number of millionaires, anticipating increases in 52 out of the 56 markets analyzed by 2028. Taiwan is expected to lead this growth with a remarkable 47% increase, driven by its microchip industry, which is crucial for advancements in artificial intelligence and other cutting-edge technologies. This projected growth highlights Taiwan’s strategic importance in the global tech ecosystem.
In the U.S., the millionaire population is projected to grow by 16%, reaching 25.4 million by 2028. This substantial growth will likely widen the gap between the U.S. and other countries, reinforcing its position as the leading nation in terms of millionaire population. The expected increase underscores the robust economic environment and wealth generation capabilities in the U.S.
In China, the number of millionaires is expected to grow by 8%, reaching 6.5 million by 2028. This growth, while significant, will be outpaced by Japan, which is anticipated to surpass China and claim the second spot on the global millionaire list by then. Japan’s expected rise is indicative of its stable economic policies and the increasing value of its assets.
Conversely, the U.K., currently third on the global millionaires list, is predicted to see a 17% decrease in its millionaire population over the next four years. This decline is attributed to recent tax policy changes affecting non-domiciled residents and the expected increase in capital gains tax following the Labour party’s victory. These policy shifts are likely to impact the wealth accumulation of high-net-worth individuals in the U.K.
UBS explains that the rise in asset values across various classes and steady economic growth have significantly contributed to the increase in USD millionaires, both historically and in future projections. The broad-based increase in asset prices, coupled with consistent economic growth, has been instrumental in elevating individuals to millionaire status. This trend is expected to continue, with more individuals reaching this financial milestone in the coming years.
This analysis was initially featured on Fortune.com, providing a comprehensive overview of the state of global wealth and the projected trends in millionaire populations across different regions. The insights from UBS’s report highlight the dynamic nature of wealth distribution and the factors driving changes in the global economic landscape.