In 2023, the world’s wealthiest individuals have experienced unprecedented levels of wealth thanks to booming stock markets and economic growth. According to a recent study by consulting firm Capgemini, the number of “high net worth individuals” (HNWI) with liquid assets of at least $1 million increased by 5.1 percent last year to 22.8 million. Their total combined wealth in 2023 reached $86.8 trillion, marking a 4.7 percent increase from the previous year.
The surge in HNWI fortunes can be largely attributed to the booming stock markets around the world. Stock indices such as New York’s Nasdaq, S&P 500, Paris CAC 40, and Frankfurt DAX all experienced significant gains in 2023, with some increasing by as much as 43 percent. This turnaround in wealth was largely driven by the surge in equities, particularly in the tech market, buoyed by enthusiasm for generative AI and its potential impact on the economy.
However, despite their newfound wealth, calls for redistributive measures to address economic disparities are becoming more prominent on the global stage. The growing wealth and inequality worldwide have sparked discussions on the need for the rich to pay their fair share of taxes. Countries like Brazil and France have been advocating for a global minimum tax on the world’s wealthiest individuals at the G20 level. As wealth continues to concentrate among a select few, it remains to be seen how governments will address these issues and ensure that economic growth benefits everyone equally.
