In the past decade, the landscape of wealth has dramatically shifted, particularly with the expansion of the so-called ‘centimillionaire’ class—individuals possessing liquid assets amounting to $100 million or more. A recent report by New World Wealth and Henley & Partners highlights a staggering 54% increase in this ultra-high-net-worth demographic, culminating in a total of 29,350 centimillionaires globally. This growth has been profoundly influenced by the socioeconomic climates of leading nations, especially China and the United States.
The emergence of China as a powerhouse in wealth accumulation has been illustrated by an extraordinary 108% increase in centimillionaires since 2013. This meteoric rise can largely be attributed to the booming tech sector, which has birthed a legion of new industrial moguls and tech entrepreneurs. Juerg Steffen, CEO of Henley & Partners, notes that this growth trajectory has far exceeded that of the United States, where the centimillionaire population rose by 81% over the same period. The U.S. remains a formidable player in this arena, characterized by a well-established financial infrastructure and a robust economy.
However, it is important to address the potential obstacles China faces. Despite its impressive growth rate, the country’s recent economic challenges—such as a faltering property market, an increase in unemployment, and subdued domestic consumption—have cast a shadow over the sustainability of this financial success. Andrew Amoils, a wealth analyst, notes that the most significant surge in wealth concentration in China occurred between 2013 and 2020, with more recent growth stagnating at about 10%.
Looking ahead, cities like Hangzhou and Shenzhen are poised for extraordinary growth, with projections indicating increases in their centimillionaire populations could exceed 150% by 2040. This optimistic outlook is backed by robust GDP growth rates that surpass the national average; Hangzhou reportedly recorded a 6.9% year-on-year increase in GDP for the first half of 2024, while Shenzhen followed closely with 5.9%. Such statistics paint a promising picture for these emerging tech hubs, suggesting they could become significant players in the global wealth landscape.
Interestingly, projections indicate that both the U.S. and China are expected to outperform the global average growth rate for centimillionaires, set at around 75%. This remarkable trend is not isolated only to East Asia; several cities in Asia and the Middle East—including Taipei, Dubai, Abu Dhabi, and Bengaluru—are also considered ripe for substantial expansion, anticipated to increase their population of ultra-rich individuals by 150% within the same timeframe.
While the narrative of super-rich growth is predominantly centered on favorable conditions in China and the U.S., European nations exhibit a contrasting trend. Although some smaller European markets like Monaco and Malta have seen extravagant growth rates, larger economies such as Germany, France, and the UK have demonstrated stagnation and sluggish development among their wealthy classes. As a result, established wealth hubs, including Zurich, Chicago, Moscow, and Madrid, are expected to lag, with forecasts predicting growth of less than 50% by 2040.
The report asserts that the future of wealth concentration, particularly in the U.S., is inherently linked to upcoming presidential elections. Economic and fiscal policies stemming from these elections could significantly influence the migration and growth trends of centimillionaires. David Young, president of the Committee for Economic Development, emphasizes the critical nature of these policies, suggesting drastic disparities in wealth growth depending on which political party takes the helm.
Concurrent with potential policy shifts, U.S. wealth trends indicate a notable interest among affluent Americans in exploring alternative residence and citizenship options. This shift reflects broader anxieties regarding economic stability, prompting high-net individuals to seek more favorable jurisdictions for their investments.
The upsurge of centimillionaires is emblematic of broader economic and technological shifts reshaping the fabric of global wealth distribution. With significant disparities in growth trends observed across various geographical areas, it becomes apparent that the future of wealth not only lies in financial acumen but is also intricately woven with political landscapes, economic policies, and emerging markets ready to take center stage in the race for wealth.