The growth rate of Europe’s affluent population and its wealth has overtaken Asia in 2021 for the first time in more than a decade, while North America continues to lead in wealth creation, according to the latest wealth report from Capgemini, a Paris-based technology company. and consulting firm.
The affluent population, i.e. those with at least $1 million in investable assets, grew 4.2% in Asia-Pacific year-on-year to reach 7.2 million . While the total number of high net worth individuals (HNWIs) in Europe at 5.7 million still lags behind Asia, its growth rate was much higher at an annual rate of 6.7%. according to the report released earlier this week.
North America maintained its leading position with 7.9 million individuals worth over US$1 million, up 13.2% year-on-year.
Globally, the affluent population increased by 7.8% year-over-year, equivalent to 1.7 million new HNWIs. The expansion was attributed to unprecedented government stimulus packages, low interest rate environments and stock market gains, Capgemini said.
Capgemini’s World Wealth Report is based on surveys of nearly 3,000 high net worth individuals and 70 wealth management executives.
The combined wealth of high net worth individuals across the globe increased by US$6.4 trillion, or 8%, to US$86 trillion in 2021.
Capgemini’s findings on high net worth individuals were in line with the general trend of wealth creation around the world. According to a Boston Consulting Group report released last week, total global wealth grew 10.6% year-over-year to reach $530 trillion in 2021.
The combined wealth of affluent North Americans was US$27.7 trillion, growing 13.8% per year. Asia and Europe accounted for US$25.3 trillion and US$18.8 trillion, up 5.4% and 7.8%, respectively.
At the country level, the United States, Japan, Germany and China remained in the lead, accounting for 63.6% of the global HNWI population, according to the report.