Asia’s Ultra-High-Net-Worth Population Declines in 2022
Introduction
A report by data firm Altrata reveals that Asia experienced the largest decline in ultra-high-net-worth (UHNW) individuals in 2022, with a decrease of about 10.9%.
Reasons for Decline
The report attributes the decline in Asia’s ultra wealthy population to various factors:
- China’s strict Covid lockdown
- The war in Ukraine
- Disrupted regional supply chains
Tech-heavy markets like South Korea and Taiwan were particularly affected by compromised exports and consumption resulting from the war.
Definition of Ultra-High-Net-Worth (UHNW) Individuals
UHNW individuals are those with a net worth of more than $30 million, according to the study.
Comparison of Net Worth
The combined net worth of Asia’s UHNW population was $12.13 trillion, surpassing Europe’s $11.73 trillion.
Europe recorded the second-worst regional performance, with a 7.1% decline to 100,850 high-net-worth individuals. The report highlights the substantial impact of Russia’s invasion on Ukraine as a direct cause.
Positive Growth in India
India was among the world’s fastest-growing economies in 2022, which underpinned a 3% rise in its UHNW population.
Altrata
World Ultra Wealth Report 2023
While most regions experienced a decline in UHNW individuals, India saw a 3% increase in its ultra-rich population due to its rapid economic growth.
Regional Performance
North America, the world’s largest ultra wealth market with a combined net worth of $16.47 trillion, reported a 4% decline in UHNW individuals.
The decline in North America was primarily attributed to the U.S. Federal Reserve’s aggressive rate-hiking cycle, driven by rising inflation.
In contrast, the Middle East, Latin America, and the Caribbean witnessed significant growth in the number of UHNW individuals. The Middle East recorded a 15.7% increase, mainly due to a spike in commodity prices. Latin America and the Caribbean experienced a notable 17.5% rise.
Improved terms of trade from higher commodity prices buoyed regional asset portfolios, contributing to the increase in UHNW individuals.
Global Trends
Globally, there was a more than 5.4% decline in the world’s ultra wealthy population, marking the first annual decrease in four years.
Altrata attributes this decline to a generational surge in inflation, which led to aggressive monetary policy tightening and a reassessment of capital market risk and returns.
Despite recent volatility, Altrata predicts an increase in the global ultra wealthy population over the next five years, reaching 528,100 individuals, with notable growth expected in Asia. North America is also expected to maintain its position as the world’s leading region for super wealthy individuals.
