In 2023, the number of high net worth individuals (HNWI) increased by 5.1 percent to 22.8 million, while their total wealth reached $86.8 trillion, up 4.7 percent from the previous year. These individuals are defined as having liquid assets of at least $1 million. The study, published on Wednesday, revealed that the rise in stock markets was a significant factor behind the increase in both the number of HNWI and their wealth.
In particular, the Nasdaq surged by 43 percent and the S&P 500 gained by 24 percent in 2023. Stock markets in Paris and Frankfurt also experienced significant growth, which helped reverse a decline that had been seen in both the number of HNWI and their wealth in 2022 due to macroeconomic uncertainty and geopolitical tensions.
The study noted that economic growth and improved fortunes for major investment sectors reversed this decline in 2023, with equities surging along with the tech market, driven by enthusiasm for generative AI and its potential impact on the economy. The rise in wealth and inequality has led to debates on making the rich pay their fair share of taxes, with countries like Brazil and France calling for a global minimum tax on the world’s wealthiest individuals at the G20 summit.
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