According to a new report from Capgemini, the wealth of the world’s high net worth individuals (HNWI) has declined.
The report shows that the ultra rich had their wealth decline by about 6%, accounting for the vast majority of the world’s wealth decrease.
The ultra rich, defined as those with a net worth of $30 million or more, lost 4% of their members as this group of people has shed 6% of their wealth. This accounts for approximately 75% of the total global decrease in wealth. “Mid-tier millionaires,” those with between $5 million and $30 million, accounted for the second largest decrease in wealth, as people in this group made up 20% of the global decrease. Lastly, the group the report refers to as the “millionaire-next-door” segment, who have between $1 million and $5 million, were the least affected by the global wealth dump.
When it comes to the actual number of people behind the global loss in wealth, the losses are concentrated with the few people at the top. The “millionaire-next-door” segment of the study makes up 90% of all high net worth individuals, meaning that the vast majority of the wealth that’s been lost was lost by the top 10% of millionaires. On the national level, it’s China’s ultra-rich that are leading the way in wealth decline, with Chinese HNWI being responsible for 25% of all HNWI wealth loss. The rest of the world’s rich also experienced a loss, with only the Middle East going against the trend. Strong GDP growth and a strong performance in the financial markets has increased the Middle-East’s HNWI population by 6%, while their wealth has increased by 4%. The global HNWI population is now down by 2% and their wealth is down 5%.