Asia has more super-rich people than Europe

Asia still has more super-rich people than Europe, second only to North America, despite the sharpest decline of any continent last year.

According to the World Ultra Wealth 2023 report by the UK-based data company Altrata, the number of ultra-rich people in Asia last year was 108,370, down nearly 11% compared to 2021, also the largest decline among the continents. The total assets of this group decreased by 10.6%, almost erasing all growth from the previous year. The report defines ultra-rich people as individuals with a net worth of at least $30 million, that is, assets minus all debts.

As for the causes, the strict Covid blockade in China and the conflict in Ukraine have affected exports and consumption, disrupted regional supply chains, and weakened stock markets, especially in tech-heavy markets like South Korea and Taiwan.

Wealth in Asia has also been pressured by a stronger US dollar, tightening monetary policy by central banks and macroeconomic policies. For example, the Bank of Japan has taken a very dovish stance, putting pressure on the yen. Tighter controls on real estate and technology continue to weigh on wealth in China.

However, the number of ultra-rich people in Asia is still higher than in Europe, where there are 100,850 people, down more than 7% from 2021. According to the report, the number of ultra-rich people in Asia surpassed that in Europe for the first time in 2019. By 2022, the ultra-rich in Asia will hold $12.13 trillion in total assets compared to $11.73 trillion in Europe.

Last year, Europe’s post-pandemic recovery was derailed by the outbreak of the conflict in Ukraine. The stock market losses were not severe, with the MSCI Europe Index ending the year down 9%. But the direct impact was significant, as Russia cut off energy supplies on which Europe depends.

The move has raised concerns about inflation, supply chains, business sentiment and recession risks. In addition, the continent's wealthy are also under pressure from tightening monetary conditions, a slowing real estate market and a falling euro against the US dollar.

Analysts predict that Asia's share of the global super-rich will continue to rise in the coming years and could reach 29% by 2027, from 15% in 2004. In contrast, the share coming from Europe will fall from 41.4% in 2004 to 25% in 2027.

While the ultra-wealthy population is expected to increase in all regions of the world, Asia is forecast to see the strongest growth over the next five years. This is due in part to India’s expanding economy, as well as a growing trend among businesses to diversify their supply chains away from China to other Asian markets.

North America was the top region last year, with 142,990 UHNW individuals, down 4%. It is expected to continue to account for around 35% of global UHNW wealth by 2027, while Europe is forecast to lag behind the two regions, despite rising total wealth accumulation. The global UHNW population will total 528,100 in 2027, up from 133,000 in 2022, according to the report.

Phien An

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