Millionaires now control half of the world's personal wealth
According to a new report by the Boston Consulting Group, half of the world's personal wealth now rests in the hands of millionaires and billionaires, up by 5% from their 45% share of personal wealth in 2016. The report found that personal wealth in the world had increased to $201.9 trillion in 2017, a 12% increase over 2016 figures. Here's more.
What the report's findings seem to indicate
"The fact that the wealth held by millionaires as a percentage of total wealth is increasing does not mean that the poor are getting poorer...It means that everyone is getting richer... [and] the rich are getting richer faster," said the report's lead author.
Almost 60% of Asia's personal wealth is in Chinese hands
Notably, personal wealth in Asian economies saw the strongest growth, climbing by 19% from 2016 to reach $36.5 trillion in 2017. Interestingly, the report noted that 57% of that $36.5 trillion is held by Chinese residents. China was also last year's biggest winner, and currently ranks second in terms of global financial wealth, having overtaken Japan over the past five years.
Not millionaires, but China's 'affluent' section drove its growth
Although China has its fair share of millionaires and billionaires (it's second only to the US), the biggest driver of personal growth in China came from its affluent sections - people with assets in the $250,000 to $1mn range.
North America still holds the maximum share of financial wealth
Despite Asia's strong growth last year, North America retained the top spot for the most financial wealth in 2017, with $86.1 trillion - an 8% increase over 2016. There's a massive concentration of wealth in North America, with over 42% of this wealth resting in the hands of those with over $5mn in assets.
China is set to see a gargantuan increase in millionaires
"China will continue to experience similar growth...and this will mean that over the next five years, there will be more wealth created in China than in the US," said the report. Number of millionaires in China is expected to grow four-times faster than the US.
Western Europe second richest, heavy wealth concentration in Eastern Europe
Western Europe ranked second after North America in terms of personal wealth, with 22% or around $44 trillion of the total amount. Meanwhile, Eastern Europe and Central Asia had the greatest concentration of wealth among its richest, with $294bn of wealth distributed between 28 Eastern European billionaires in the Bloomberg Billionaires Index. In 2017, Europe saw a 15% increase in personal wealth.
Inequality, inequality, inequality...it's likely to get worse
Despite assurances of 'everyone getting richer', it's unlikely that wealth distribution between the haves and have-nots is likely to get any fairer. In January this year, Oxfam reported that a new billionaire was created every two days in 2017, and that 82% of the global wealth created in 2017 went to the top 1%, while absolutely nothing (yep, nothing) went to the poorest half.
