Asia has more super-rich people than Europe

Asia still has more ultra-wealthy individuals than Europe, second only to North America, despite the sharpest decline in numbers across all continents last year.

According to the World Ultra Wealth 2023 report by UK data firm Altrata, the number of ultra-high net worth individuals in Asia was 108,370 last year, a decrease of nearly 11% compared to 2021, the largest decline among all continents. Their total assets decreased by 10.6%, almost wiping out all previous year's growth. The report defines ultra-high net worth individuals as those with a net worth of $30 million or more, after deducting all liabilities.

Regarding the causes, the strict Covid lockdown in China and the conflict in Ukraine affected exports and consumption, disrupted regional supply chains, and weakened stock markets, especially in technology-heavy markets like South Korea and Taiwan.

The value of assets held by wealthy Asians is also under pressure from a stronger USD, tighter monetary policies by central banks, and various macroeconomic policies. For example, the Bank of Japan maintains a very flexible stance, putting significant pressure on the yen. Tight controls in the real estate and technology sectors continue to impact asset values in China.

Nevertheless, the number of ultra-high-net-worth individuals in Asia remains higher than in Europe, which has 100,850 people, a decrease of more than 7% compared to 2021. According to the report, the number of ultra-high-net-worth individuals in Asia surpassed that in Europe for the first time in 2019. By 2022, Asian ultra-high-net-worth individuals held $12.13 trillion in total assets compared to $11.73 trillion in Europe.

Last year, Europe's post-pandemic recovery lost momentum due to the outbreak of the Ukraine conflict. Losses on stock markets weren't severe, with the MSCI Europe index ending the year down 9%. But the direct impact was significant, as Russia cut off energy supplies that Europe depends on.

This move has led to issues related to inflation, supply chains, business sentiment, and recession risks. Furthermore, the assets of the continent's wealthy are also under pressure from tightening monetary conditions, a slowing real estate market, and the depreciation of the euro against the dollar.

Analysts predict that the proportion of ultra-wealthy individuals in Asia, out of the global total, will continue to rise in the coming years and could reach 29% by 2027, up from 15% in 2004. Conversely, the proportion from Europe will decrease from 41.4% in 2004 to 25% by 2027.

While the ultra-wealthy population is expected to grow across the globe, Asia is projected to see the strongest growth over the next five years. This is partly due to India's expanding economy , as well as the growing trend of businesses diversifying their supply chains away from China to other Asian markets.

Last year, North America led with 142,990 ultra-high-net-worth individuals, a 4% decrease. It is projected to continue accounting for approximately 35% of the total global ultra-high-net-worth wealth by 2027, while Europe is forecast to lag behind these two regions, despite continued growth in accumulated wealth. According to the report, the global ultra-high-net-worth population will reach a total of 528,100 by 2027, up from 133,000 in 2022.

Phi An

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