The world now has fewer billionaires: Here's what happened
Over the past year, we have seen the global economy struggling to stay afloat amid war, macroeconomic headwinds, the tech sector's fall, and the banking crisis. These economic uncertainties surrounding us have reduced global wealth, says 2023 M3M Hurun Global Rich Health. The world now has much fewer billionaires than it had a year ago.
Why does this story matter?
Considering how 2022 turned out, the fall in global wealth is not surprising. What stood out the most was the struggles of the tech sector, which saw the industry being taken into new lows. Companies that never reported losses recorded consecutive losses. Some of the world's richest lost wealth to the tune of billions. The global economy still remains a risky customer.
There are 8% fewer billionaires in the world now
The world currently has 3,112 billionaires, down 8% or 269 from last year. Per the report, total global wealth fell 10% to $13.7 trillion. In the US and China, 173 and 128 billionaires, respectively, lost over $1 billion. In India, 41 billionaires lost over $1 billion year-over-year. The US topped in cumulative wealth loss with a decline of $603.7 billion.
Consumer goods were the top source of wealth
Among the industries that suffered the most over the past year are semiconductors, cloud solutions, cyber security, payment systems, e-commerce, battery, and new energy. Consumer goods, with 9.2%, and financial services, with 9.1%, were the top sources of wealth. Healthcare overtook retail to grab third place. Fertilizers and commodity trading, iron and steel, oil and gas, and luxury goods also had a good year.
Jeff Bezos saw his wealth deplete by $70 billion
Jeff Bezos saw his wealth deplete by $70 billion, putting him at the top of the list of 'biggest losers.' Tesla and Twitter CEO Elon Musk is second on the list. His fortunes decreased by $44 billion. In India, Gautam Adani lost the most, with his wealth declining by $28 billion. Mukesh Ambani, the only Indian in the top 10, lost $21 billion.
Number of billionaires fell in US, China, and India
The US and China account for 53% of billionaires in the world. In the US, the number of billionaires fell from 716 in 2022 to 690 in 2023. India also saw a decline in the number of billionaires. The country now has 187 billionaires compared to 215 in 2022. China has the most number of billionaires that lost more than $1 billion.
Most of the richest saw their wealth decline
Most of the world's richest did not have a great 2022-2023. Even those at the top of the list saw their wealth decline compared to the previous year. This is primarily due to the uncertainties that engulfed the global economy in mid-2022. Companies around the world have tightened their purse strings, fearing a recession. The economy is yet to recover from all that.
