Guests are seen within the J Hotel positioned within the Shanghai Tower, in Shanghai on June 23, 2021.
Hector Retamal | Afp | Getty Images
China, with the world’s second-largest economy and the second-highest population, will again see the largest exodus of millionaires this yr, based on latest research.Â
In response to a report by investment migration consultancy Henley & Partners, China is anticipated to lose the biggest variety of dollar millionaires this yr attributable to migration, compared to every other country.Â
Data from the firm showed that a net 10,800 high-net-worth individuals migrated out of China in 2022, and one other net 13,500 are expected to go away this yr.Â
This will not be a difficulty that began with the coronavirus pandemic, and has been occurring for the last 10 years. China has seen the largest departure of millionaires every year for the past decade, causing general wealth growth within the country to decelerate, Andrew Amoils, head of research at global wealth intelligence firm Recent World Wealth which helped create the report, said in an accompanying statement.
“The recent outflows might be more damaging than usual. China’s economy grew strongly from 2000 to 2017, but wealth and millionaire growth within the country has been negligible since then (when measured in U.S.-dollar terms).”Â
Other big losersÂ
Second to China, Henley & Partners forecasts India to lose a net 6,500 millionaires this yr, a net 1,000 decrease from the millionaires that left the country in 2022.Â
“Prohibitive tax laws coupled with convoluted, complex rules referring to outbound remittances which are open to misinterpretation and abuse, are but just a few issues which have triggered the trend of investment migration from India,” said Sunita Singh-Dalal, partner of personal wealth and family offices at law firm Hourani, in the identical report.Â
Nevertheless, Amoils highlighted that these outflows shouldn’t be a matter of concern since “India produces way more latest millionaires than it loses to migration.”Â
Other Asian nations are expected to see millionaires leave their countries too.Â
Hong Kong is anticipated to lose a net 1,000 millionaires this yr, and South Korea and Japan could lose 800 and 300, respectively. Reports suggest residents of Hong Kong left town in droves last yr — attributable to Covid-19 restrictions and what they see as an erosion of democratic norms.Â
Despite political unrest and economic uncertainty from Moscow’s war on Ukraine, Russia is just expected to lose a net 3,000 millionaires this yr, a pointy decline from 8,500 in 2022.Â
Russia takes fourth place in Henley & Partners’ rating, after the UK which could lose a net 3,200 millionaires this yr, double than what it lost the yr before.Â
“Brexit has made the UK less hospitable and welcoming to high-net-worth individuals. It’s now harder for them to maneuver between the UK and EU countries,” Trevor Williams, visiting professor on the University of Derby and former chief economist at Lloyds Bank Business said within the report.
“Evidence shows that the UK’s share of inward investment into Europe has declined because it left the EU, with Germany and France benefiting.” Â
Eyes set on these countries
Australia could outrank the United Arab Emirates this yr in welcoming the very best net variety of millionaires this yr. Australia is anticipated to see an influx of a net 5,200 millionaires, while the UAE is available in second with 4,500. Singapore ranks third and will see a net 3,200 millionaires establishing homes within the city-state.Â
Western nations, as an entire, remain a pretty destination for millionaires, based on the research, with the U.S. (2,100), Switzerland (1,800), and Canada (1,600) all clinching spots in the highest 10.Â
“There’s been a gradual growth in millionaire migration over the past decade, with global figures for 2023 and 2024 expected to be 122,000 and 128,000, respectively,” Juerg Steffen, CEO of Henley & Partners, said.
