Asia’s Ultra-High-Net-Worth Population Declines by 10.9% in 2022
A report by data firm Altrata reveals that Asia experienced the largest drop in its ultra-high-net-worth (UHNW) population last year, with a decline of about 10.9%. The report attributes this decline to various factors, including China’s strict Covid lockdown, the war in Ukraine, and disrupted regional supply chains.
Impact on Tech-Heavy Markets
Tech-heavy markets like South Korea and Taiwan were particularly affected by compromised exports and consumption resulting from the war, as highlighted by the global data firm.
Definition of UHNW Individuals
In this study, UHNW individuals are defined as those with a net worth exceeding $30 million.
Comparison with Europe’s Wealth
The combined net worth of Asia’s super rich population was $12.13 trillion, slightly higher than Europe’s $11.73 trillion.
Europe’s High-Net-Worth Individuals Decline by 7.1% in 2022
Europe recorded the second-worst regional performance, with a 7.1% decrease in its high-net-worth individuals. The report points to the “direct fallout” from Russia’s invasion of Ukraine as a significant factor contributing to this decline.
Inflationary Shocks and Supply Chain Disruption
Moscow weaponizing energy supplies, which Europe heavily relies on, led to inflationary shocks, heightened risk aversion, and the disruption of supply chains, all contributing to the decline in Europe’s high-net-worth individuals.
India’s UHNW Population Sees a 3% Rise
“India was among the world’s fastest-growing economies in 2022, which underpinned a 3% rise in its UHNW population.”
– Altrata, World Ultra Wealth Report 2023
Out of the top 10 locations with UHNW individuals, including the U.S., China, and Hong Kong, India was the only country to experience an increase in its UHNW population. This growth is attributed to India’s status as one of the world’s fastest-growing economies.
North America’s UHNW Population Falls by 4%
North America, the world’s largest ultra-wealth market with a combined net worth of $16.47 trillion, saw a 4% decrease in its UHNW population. The report attributes this decline to the U.S. Federal Reserve’s aggressive rate-hiking cycle, initiated in March 2022 due to rising inflation levels.
Gains in the Middle East, Latin America, and the Caribbean
The Middle East experienced a 15.7% increase in its ultra-rich population, primarily driven by a commodity price spike. Latin America and the Caribbean also saw a 17.5% rise in the number of UHNW individuals.
Global Decline in Ultra-Wealthy Population
Globally, there was a 5.4% drop in the world’s ultra-wealthy population in 2022, marking the first annual decline in four years. Altrata attributes this decline to a generational surge in inflation, leading to aggressive monetary policy tightening, which prompted a reassessment of capital market risk and returns.
Future Outlook
Despite recent volatility, Altrata predicts an increase in the global ultra-wealthy population over the next five years, reaching 528,100 individuals from the current 395,070. Notably, Asia is expected to drive a significant portion of this growth, while North America is projected to maintain its position as the world’s leading region for the super wealthy.
