According to a study released on Wednesday, there have never been so many wealthy people in the world, and their investments in rising stock markets have made them more affluent than ever before.
According to consulting firm Capgemini, the number of “high net worth individuals” (HNWIs), or those with liquid assets of at least $1 million, increased by 5.1% to 22.8 million in the previous year.
Their wealth has increased in tandem with the rise in stock markets: in 2023, the broad-based S&P 500 gained 24%, while New York’s tech-heavy Nasdaq soared 43%.
The Frankfurt DAX increased by 20%, but the Paris CAC 40 increased by only 16%.
According to the report, 2022 was marked by geopolitical tensions and macroeconomic uncertainty, with a three percent decline in the number of HNWIs and their wealth.
As stocks dropped, their wealth declined the fastest in ten years. However, 2023 brought economic growth and improved fortunes for major investment sectors to reverse the falloff,” according to the report.
Enthusiasm for generative AI and its potential economic impact drove equities to rise alongside the tech market, despite ongoing interest rate uncertainty and rising bond yields.”
Debates about making the wealthy pay their fair share of taxes have been fueled by the world’s growing wealth and inequality. France and Brazil have pressured other G20 nations to impose a global minimum tax on the wealthiest individuals on the planet.
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