Global Wealth Report 2024: Growth Surges to 4.2% Countering Decline of 2022
By 2030, upward wealth mobility is expected to become more noticeable, while evidence of a horizontal wealth transfer should start to appear later.
In 2023, global wealth rebounded from a 3% contraction in the previous year, largely due to currency effects, particularly a strong USD. The year saw a robust growth of 4.2%, surpassing losses from 2022. Growth was prominent in Europe, the Middle East, and Africa (EMEA) at 4.8%, and in Asia-Pacific (APAC) at 4.4%. Real growth outpaced nominal growth as inflation slowed, leading to an inflation-adjusted global wealth increase of nearly 8.4%.
Global Wealth Dynamics
Despite consistent growth since 2008, most markets experienced a slowdown in wealth expansion. The fifteenth edition of the Global Wealth Report highlights key regional and demographic trends shaping wealth distribution.
In 2023, wealth distribution across regions highlighted EMEA as the wealthiest on average, with adults averaging USD 166,000 in assets, followed closely by APAC at USD 156,000 and the Americas at USD 146,000. However, EMEA's wealth grew at a slower pace, around 41% since 2008, contrasting sharply with APAC's impressive 122% and the Americas' 110% growth rates. APAC led global wealth growth at nearly 177%, though accompanied by a substantial surge in debt, increasing over 192% in the same period. The United States notably defied global trends, accelerating its compound annual growth rate from 4% in the 2000s to 6% in 2010-2023. Meanwhile, Switzerland maintained its lead in average wealth per adult, followed by Luxembourg, Hong Kong SAR, and the United States, reflecting robust financial stability. Türkiye, Qatar, and Russia experienced significant wealth increases in 2023, with Türkiye notably growing by 157%, outpacing other markets. Looking ahead, the report forecasts a substantial rise in millionaires globally by 2028, with significant growth expected in Taiwan.
Table 1: Top 25 in average wealth per adult (USD)
Table 2: Top 25 in median wealth per adult (USD)
Mobility on the Wealth Ladder
The report underscores that across various wealth brackets and timeframes, individuals are more likely to ascend the wealth ladder than descend it. Approximately one in three people move into a higher wealth bracket within a decade, with over 60% escaping the lowest bracket over thirty years.
Future Wealth Transfers
An estimated USD 83 trillion is expected to transfer over the next two decades, equivalent to a year's global economic output. Notably, a significant portion of this wealth, approximately USD 9 trillion, will transfer horizontally between spouses before reaching the next generation. This trend is particularly significant for women, given their longer life expectancy, emphasizing a substantial transfer of wealth to female heirs.
Iqbal Khan, Co-President UBS Global Wealth Management, said: “Wealth needs careful stewardship and managing it properly needs time, dedication and passion. As the world’s only truly global wealth manager, we understand the shifts and changes in global and local wealth and translate this into opportunities and outcomes for our clients.”
Robert Karofsky, Co-President UBS Global Wealth Management, adds: “Backed by 30 years of data, the Global Wealth Report crafts a clear picture of how wealth is created, how it’s distributed, how it transforms and how it’s transferred. It gives us deep insights and understanding that we can bring to fruit for our clients.”
Paul Donovan, Chief Economist at UBS Global Wealth Management, notes: “The world economy is embarking on a period of profound structural change. Such episodes often create significant changes in wealth patterns. At the same time, wealth is needed to finance the investment in both technology and people that will allow humanity and the planet to thrive in the brave new world. Knowing where and how wealth is held is essential to mobilizing it effectively.”
Access the full report - https://www.ubs.com/global/en/wealth-management/insights/global-wealth-report-clients.html
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