The United States has quickly surpassed China as the leading country for millionaires and billionaires, according to the 2024 USA Wealth Report from Henley & Partners and New World Wealth. The report reveals that there are now over 5.5 million Americans with liquid investible assets exceeding $1 million, representing a 62% increase over the past decade. This growth rate far outpaces the global average of 38%.
The population of millionaires in the U.S. has surged by 35% in the last five years, nearly twice as fast as in China. The U.S. now lays claim to 37% of the world’s millionaires, up from 35% in 2018. The disparity becomes even more pronounced at the upper echelons of wealth. The U.S. boasts 9,850 centi-millionaires (worth $100 million or more), compared to China’s 2,352. Additionally, the U.S. is home to approximately 788 billionaires, while China has 305. According to the report, “The USA remains the world’s undisputed leader in private wealth creation and accumulation.”
Dominic Volek, group head of private clients at Henley, pointed out that China’s stringent Covid lockdowns and increased government intervention in the private sector have hampered wealth creation in the country. This has resulted in a noticeable slowdown in wealth growth in China, while the U.S. has reaped the benefits of this shift.
The trend of wealth migration from China to the U.S. is evident in the numbers. In 2023, a net 13,500 Chinese millionaires left China, marking a new record. Conversely, the U.S. experienced a net inflow of 2,200 millionaires in 2023, with a projected increase to 3,500 in 2024. The report highlights that the U.S. continues to attract affluent tech entrepreneurs and engineers, particularly from Asia, Europe, and the UK.
The U.S.’s leadership in wealth creation is translating into increased spending and investing. A report by UBS and Art Basel indicates that the U.S. leads in global art sales, accounting for 42% of sales by value. The country also dominates in the sale of high-priced artworks. The latest projections by Bain suggest that China will only represent 35% to 40% of global luxury goods consumption by 2030, showing minimal growth from current levels. Luxury spending in China remains approximately 40% below 2019 levels, while luxury sales in the U.S. reached $80 billion last year, surpassing China’s $52 billion.
Analysts and economists anticipate that China will continue to be a significant contributor to luxury and wealth growth in the coming years. However, the U.S. has emerged as both the primary market and catalyst for growth in the high-net-worth economy. Volek asserts, “The wealth creation opportunities in the U.S. are unrivaled on a global scale.”
Leave a Reply