The number of high net-worth individuals (HNWI) and their collective fortune have risen to record highs, due largely to surging stock markets, a study by consulting firm Capgemini revealed on Wednesday.
According to the firm’s “World Wealth Report”, the number of HNWI (people with investible assets exceeding $1 million) rose 5.1% to a total of 22.8 million in 2023. Their total wealth has also grown 4.7% to an estimated $86.8 trillion from the previous year.
The increases in wealth and the number of wealthy individuals are the highest since the annual report’s inception in 1997.
The surge in wealth primarily resulted from the global rise in stock markets. For instance, the American Nasdaq index soared by 43% while the S&P 500 rose by 24% in 2023. During the same period, France’s CAC 40 index increased by 16% and Frankfurt’s DAX by 20%.
“The stock markets skyrocketed alongside the tech market, fuelled by enthusiasm for generative AI and its potential impact on the economy,” Capgemini noted in the study, which evaluated 71 countries.
Last year, North America saw the largest increase in millionaires (+7.1%) and in wealth (+7.2%), ahead of Asia-Pacific and Europe.
The escalating levels of wealth alongside mounting inequalities have ignited recent debates about how to improve tax contributions from the wealthiest individuals.
