According to a study published on Wednesday, the number of “high net worth individuals” (HNWI) has increased by 5.1 percent last year to 22.8 million. These individuals are defined as having liquid assets of at least $1 million. Their total wealth reached $86.8 trillion in 2023, a 4.7 percent increase from the previous year, which is the highest since this study began in 1997.
The fortunes of these wealthy individuals have risen due to soaring stock markets – the Nasdaq surged 43 percent and the S&P 500 gained 24 percent in 2023. Stock markets in Paris and Frankfurt also saw significant growth. In 2022, the number of HNWI and their wealth had each fallen by more than three percent due to macroeconomic uncertainty and geopolitical tensions.
However, in 2023, economic growth and improved fortunes for major investment sectors reversed this decline. Equities surged along with the tech market, driven by enthusiasm for generative AI and its potential impact on the economy.
The rising wealth and inequality in the world have led to debates on making the rich pay their fair share of taxes. Countries like Brazil and France have called for a global minimum tax on the world’s wealthiest individuals at the G20 summit.