In the last decade, the landscape of ultra-wealth has changed dramatically, driven primarily by economic growth in select regions, notably China and the United States. According to a recent report by New World Wealth along with investment migration advisory firm Henley & Partners, the number of individuals classified as centimillionaires—those with investable wealth exceeding $100 million—has increased significantly. This article delves into the rise of these ultra-high-net-worth individuals and the implications for global wealth distribution.
The report indicates an impressive 54% increase in the population of centimillionaires worldwide, now numbering 29,350. This growth has been particularly pronounced in China, where the centimillionaire population has soared by 108% over the past ten years. The United States has also experienced significant growth, albeit at a slightly lower rate of 81%. As noted by Juerg Steffen, CEO of Henley & Partners, this phenomena signals a noticeable shift in wealth dynamics, with the Asian giant emerging as a formidable player in the global economy.
China’s Economic Trends and Their Impact
While China’s increase in wealth was heavily driven by the technology sector and the rise of industrial magnates, the nation faces economic headwinds that could constrain future growth. After a period of unprecedented growth, challenges like a troubled property market, persistently high unemployment rates, and weakened domestic consumer demand have surfaced, signaling a cooling off of the economic expansion that fueled wealth creation. Indeed, the pace of growth among centimillionaires has slowed post-2020, with only a modest increase observed—around 10% during this period.
Amoils, a wealth analyst at New World Wealth, emphasizes that the most rapid accumulation of centimillionaires in China took place from 2013 to 2020. Moving forward, a nuanced understanding of economic fluctuations, policy changes, and global market conditions will be crucial in forecasting the longevity of this wealth boom.
Despite recent stagnation, the future appears promising for specific Chinese cities like Hangzhou and Shenzhen. The report underscores these cities as potent future hubs for wealth concentration, projecting potential growth in centimillionaire populations by over 150% by 2040. Public sector investments and robust industrial sectors have contributed to the thriving economies of these urban centers; for instance, Hangzhou registered a remarkable 6.9% GDP growth in the first half of 2024.
Beyond China, other global cities are also poised for significant wealth growth. Cities such as Taipei, Dubai, and Bengaluru in India are positioned for centimillionaire growth rates that echo the impressive statistics displayed by emerging tech centers. In stark contrast, established hubs in Europe and North America, such as Zurich and Chicago, might experience stagnation, reflecting a shift in how wealth is accrued and distributed in a global marketplace.
The United States continues to be a primary center of wealth accumulation with cities like New York and San Francisco leading the charge. Preliminary forecasts suggest that their centimillionaire populations could grow by over 50% in the coming years. However, the trajectory of wealth growth in the U.S. may hinge on political developments, particularly the outcome of upcoming presidential elections. As David Young from The Conference Board notes, differing fiscal and economic policies resulting from electoral outcomes could create radical shifts in wealth accumulation patterns.
Moreover, Henley & Partners’ research reveals a growing tendency among wealthy Americans to explore alternative residence and citizenship options—an indication of a shifting mindset towards globalization and the mobility of wealth. Such trends could potentially alter the composition of centimillionaires not only in the U.S. but also in other regions around the globe.
Conclusion: A Shifting Paradigm
As we move further into the 21st century, the evolution of wealth among the super-rich continues to unfold. The surge in centimillionaire populations can be viewed as both an outcome of favorable economic conditions and a reflection of broader global trends. However, the interconnected nature of today’s economy suggests that future growth will also be affected by external factors, including geopolitical developments, technological advancements, and demographic shifts.
These trends illustrate that while the rich are indeed getting richer, the pathways to wealth are becoming increasingly diverse and complex. As nations navigate economic challenges, it will be imperative to observe how these dynamics influence wealth creation on a global scale, setting the stage for the next chapter in the ever-evolving landscape of global wealth.