The number of millionaires is on the rise with 40% more expected to be made worldwide in the next five years, according to the latest research from Credit Suisse.
The Credit Suisse Group AG’s Global Wealth Report 2022 states that by 2026, we’ll have millions of millionaires: more than 87.5 million globally.
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According to a February report from investment consultants Henley and Partners, the U.S. is the world’s largest wealth market and the country accounts for 32% of global wealth and 36% of the world’s millionaires.
So you might be thinking that means the U.S. is about to get that much richer, too.
But in fact, today, the country leading the charge in manufacturing of new millionaires isn’t the United States: It’s China.
The million-dollar surprise
To be certain, China lost much in productivity and economic drive during the COVID-19 pandemic as lockdowns inundated the country. But developing markets are likely to see a faster recovery from the economic downturn, the report states.
Private fortunes should jump 36% by 2026 to $169 trillion, Credit Suisse reports. It’s quite the rise given the current fall in Chinese markets; the MSCI China Index has plummeted more than 30% year-to-date.
Yet is the report perhaps a tad optimistic? Growth in China has its associated risks, especially given geopolitical tensions with the U.S. and the 2024 deadline for certain Chinese stocks to be delisted from Wall Street. Meanwhile, the rivalries between the two nations in tech, energy and telecom continue unabated.