A version of this text first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Join to receive future editions, straight to your inbox.
The U.S. has rapidly overwhelmed China because the world’s top spot for millionaires and billionaires, according a recent report.
There are actually greater than 5.5 million Americans with liquid investible assets of greater than $1 million, up 62% over the past decade and well above the worldwide growth rate of 38%, in line with the 2024 USA Wealth Report from Henley & Partners and Recent World Wealth.
Over the past five years, the population of millionaires within the U.S. has grown 35%, nearly twice as fast as China’s. The U.S. is now home to 37% of the world’s millionaires, up from 35% in 2018.
The divergence grows much more at the highest of the wealth ladder. The U.S. has 9,850 centi-millionaires — those price $100 million or more — compared with China’s 2,352. The U.S. has about 788 billionaires to China’s 305.
“The USA stays the world’s undisputed leader in private wealth creation and accumulation,” in line with the report.
Dominic Volek, group head of personal clients at Henley, said the strict Covid lockdowns in China coupled with increases in its government intervention within the private sector have slowed the expansion in wealth creation.
“China has definitely slowed lots because of these elements and the U.S. has benefited,” he said.
The shift from China to the U.S. can also be reflected in wealth migration patterns. A net 13,500 Chinese millionaires left China in 2023, marking a recent record. The U.S. had a net inflow of two,200 millionaires in 2023 and a projected inflow of three,500 in 2024, in line with the Henley report.
“The USA stays a top draw for wealthy tech entrepreneurs and engineers, especially from Asia, Europe, and the UK,” the report said.
America’s leadership in wealth creation is spilling over into spending and investing. A report from UBS and Art Basel finds that the U.S. is the leader in global art sales, accounting for 42% of sales by value. The U.S. also leads the world in sales of the highest-priced works.
Bain now predicts that China will account for less than 35% to 40% of world luxury goods consumption by 2030, up only barely from current levels. Overall luxury spending in China is about 40% below where it was in 2019, in line with Bain. Luxury sales within the U.S. last 12 months totaled $80 billion, to China’s $52 billion, Bain found.
While analysts and economists say China will still be a significant source of luxury and wealth growth in the approaching years, the U.S. has change into each the dominant market and source of growth for the high-net-worth economy.
“The wealth creation opportunities within the U.S. are second to none globally,” Volek said.
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