In 2023, the United States saw a notable surge in the number of millionaires, adding approximately 500,000 individuals to its roster of high-net-worth individuals. This increase surpassed that of any other country globally, marking a significant milestone in the wealth landscape. According to a recent report by Capgemini, which provides insights into global wealth trends, the United States boasted a total of 7.4 million high-net-worth individuals in 2023, up from 6.9 million in the previous year.
Capgemini’s report offers a specific definition of millionaires as individuals with investable assets exceeding $1 million. However, it excludes assets such as primary residences, collectibles, consumables, and consumer durables from this calculation. This distinction provides a clearer picture of liquid wealth available for investment and financial growth.
The uptick in millionaire status can be attributed to several factors, with stock market gains playing a significant role. Unlike the challenges experienced in 2022, 2023 saw a more favorable climate for the wealthy. The surge in equities, particularly in the tech market, contributed to this positive trend. Enthusiasm for generative AI and its potential economic impact fueled investor confidence, driving up stock prices and contributing to the overall increase in wealth.
Government spending initiatives also played a crucial role in boosting wealth accumulation among millionaires. Programs such as the CHIPS Act and the Inflation Reduction Act injected capital into key industries like semiconductors and construction. This increased investment and spending stimulated economic growth and contributed to the overall rise in wealth among high-net-worth individuals.
Despite the substantial increase in the number of millionaires, wealth remained concentrated among a relatively small segment of the population. The top 1% of high-net-worth individuals covered in the report held a significant portion of global wealth, highlighting persistent wealth inequality issues.
While the United States experienced the greatest absolute increase in the number of millionaires among the top 25 countries by millionaire population, several other nations saw higher percentage growth rates. Countries like Australia, India, and Italy, although with smaller millionaire populations, outpaced the US in terms of percentage growth, indicating diverse economic trajectories across different regions.
Capgemini’s analysis relies on its proprietary Lorenz curve methodology, which integrates data from various reputable sources, including the World Bank, IMF, Economist Intelligence Unit, and national governments. This robust methodology offers valuable insights into the size and growth of wealth distribution, providing a comprehensive understanding of global wealth trends and dynamics.