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China currently has 4.4 million millionaires and attained another groundbreaking record being home for 100 million members of the world’s “top 10%”. This is the first time China surpasses America’s 99 million members.
Americans have stood the test of time by making the so-called “American Dreams” a reality. Not just ones, twice or thrice, but for several decades by producing the highest number of wealthy people globally.
But according to the recent annual wealth survey conducted by Credit Suisse, America is in for a rude shock after China has overhauled them as the new residence of the growing population of wealthy people around the globe.
There’re 99 million Americans among the 10% wealthiest individuals in the world, compared to 100 million Chinese.
According to the report:
“The rapid transformation of China from an emerging nation in the transition to a fully-fledged market economy.”
Individuals in the top 10% of global riches accumulate at least $109,430 in personal savings. However, the United States is still residence to 40% of the globe’s millionaires. In other words, it retains the “bragging right” as the preferred home for the super-rich.
According to the report, one in every 14 adults in the US is a dollar millionaire. This comes after the population of millionaires in America increased by 675,000 to 18.6 million. Meanwhile, in China, only approximately 4.4 million people are millionaires.
Interesting Facts and Figures
Worldly wealth is estimated to increase by 27% over the next five years, recording $459 trillion by 2024. That will be a dramatic boom from the present $361 trillion of global wealth.
Middle and low-income nations counter for 38% of the development, although they represent just 31% of the present wealth. Increment by middle-income countries will be the key influencers of international trends. The populations of millionaires will also increase dramatically over the next five years to about 63 million. On the other hand, the figure of Ultra-high net-worth individual (UHNWI) will hit 234,000.
Wealth of Nations
The U.S economy continued to boom in 2018-2019, resulting in the 11th year of increasing wealth. Crucial factors have been a huge tax reduction and low-interest rates. Headwinds have accumulated, however, in the nature of reducing trade conflict with China, stock –market volatility, friction in the Middle East, and issues regarding mounting government debt.
In the case of China, it has undergone a hectic year, having been imposed with tariffs by the U.S and lagging behind in a number of its primary export market due to a decline in economic growth. This was observed in a second-year of reduced wealth development that’s very unusual for this flourishing nation.
Concerning total household wealth, China presently comes in the second position behind the US, but above Japan. Enjoying a healthy property market, the proportion of household assets in non-financial nature grew from 43% in 2015 to 53% in 2019. Debt totaled just $4,410, which is equal to gross assets of 7%. The real estate involved $29,760 per adult in mid-2018. While complaints have been issued concerning China’s expanding household debt, this debt ratio remains low by global standards.