The U.S. Overtakes China as the Leader in Wealth Creation

The U.S. Overtakes China as the Leader in Wealth Creation

The United States has rapidly surpassed China as the leading country in the world for millionaires and billionaires, according to a recent report. The number of Americans with liquid investible assets exceeding $1 million has reached over 5.5 million, a 62% increase over the last decade. This growth is significantly higher than the global average growth rate of 38%, as stated in the 2024 USA Wealth Report from Henley & Partners and New World Wealth.

Over the past five years, the population of millionaires in the U.S. has expanded by 35%, nearly twice the growth rate of China. Currently, the U.S. is home to 37% of the world’s millionaires, up from 35% in 2018. The divergence in wealth becomes even more evident at the top of the wealth ladder. The U.S. boasts 9,850 centi-millionaires (those with $100 million or more) compared to China’s 2,352. Additionally, the U.S. has approximately 788 billionaires, while China has 305. The report asserts that “the USA remains the world’s undisputed leader in private wealth creation and accumulation.”

Dominic Volek, the group head of private clients at Henley, attributed the slowdown in wealth creation in China to strict COVID lockdowns and increased government intervention in the private sector. These factors have favored the U.S., leading to a surge in wealth creation and accumulation in the country. The migration of wealthy individuals further reflects this trend, with more Chinese millionaires leaving China in recent years while the U.S. experiences a net inflow of millionaires.

America’s dominance in wealth creation is also evident in spending and investing patterns. The U.S. leads in global art sales, accounting for 42% of sales by value. It also dominates the market for the highest-priced artworks. In contrast, China’s share of global luxury goods consumption is expected to increase only slightly by 2030. Luxury spending in the U.S. has surpassed that of China, reaching $80 billion in sales last year.

Although China will continue to be a significant player in luxury and wealth growth, the U.S. has emerged as the primary market and source of growth for the high-net-worth economy. Analysts and economists predict that the wealth creation opportunities in the U.S. will remain unparalleled on a global scale. Dominic Volek emphasized, “The wealth creation opportunities in the U.S. are second to none globally,” highlighting the country’s position as a leader in wealth creation and accumulation.

Business

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