The wealthiest people in the world experienced an increase in their number by only a few new members last year than in previous years. This is primarily because they invested in the stocks in their home country.
Global wealth consultancy Wealth-X released data proving that the High Net Worth Individuals (HNW) increased by 1.9% in 2018, totaling at 22.4 million HNW individuals.
HNW individuals are those individuals that with a net value from $1 million to $30 million. The combined wealth of HNW individuals in 2018 increased by 1.8% to $61.3 trillion, which is lesser than the previous year.
The value of the Asian HNW increased by less than 1% in 2018. Although the GDP increased by more than 8% in 2018, their stock markets plunged by more than 11% last year, and this caused the insignificant change in the HNW individuals, and they’re worth in Asia.
Wealth-X also stated that the number of HNW individuals and their net worth in Latin America and the Caribbean, Africa and the Pacific, decreased in 2018 by 7.6%, 2.5% and 1.9%, respectively, whilst seeing GDP expansion in 2018 — except Latin America and the Caribbean — whose stock markets were part of the worst ones last year.
Regions such as Europe, the Middle East and North America were the exceptions. The growth of their strong GDP and stability of their equity markets were ample backings to the definite increase in their “high net worth” populations in 2018 (4.5%, 3.1% and 2.1%, respectively).
However, this level of growth was termed “medium to low” for those regions.
Wealth-X makes use of a database of HNW individuals that gives information about their assets (private and public businesses and investible assets), career, affiliations, family history, education, philanthropic achievement, hobbies, interests, real estate investments and business dealings.
The HNW individuals in Asia are predicted to grow in the medium term. Now, Asia has an equal number of HNW individuals as Europe, and are predicted to be the region with the fastest growing HNW in the next five years.
Hong Kong and Singapore are at the forefront, while other local developing markets are rising to serve the HNW.
Although both the HNW population and Ultra High Net Worth population (individuals with assets worth $30 million and above) are densely populated with males, the HNW population exhibits an equal gender split.
After a steady rise in recent times, the population of women in the HNW community hit 16%, while the women in the UHNW population is just below 14%. In America, while the majority strive to make ends meet, executives, however, are smiling to the bank as their compensations surged in 2018.
The ratio of the pay of CEOs of Fortune 500 companies to the pay of their employees range from 2 to 1 to nearly 5,000 to 1 (obtained from a staff of Keith Ellison when he was the Democratic congressman for Minnesota; Ellison is now the Attorney General-elect of Minnesota).