Global Wealth Report 2025: Wealth growth accelerated in 2024

Global wealth increased by 4.6% in 2024, driven primarily by North America's robust growth exceeding 11% due to a strong US dollar and buoyant financial markets, while APAC and EMEA lagged behind with growth rates below 3% and 0.5% respectively. The number of USD millionaires rose by 1.2%, with the US adding over 379,000 new millionaires, and the report highlights the increasing significance of 'Everyday Millionaires' (EMILLIs) with investable assets between USD 1-5 million, whose numbers have quadrupled since 2000 to approximately 52 million globally. Over the next five years, wealth is projected to continue growing, led by the US, Greater China, Latin America, and Oceania, with over USD 83 trillion expected to be transferred over the next 20-25 years.

Analysis

Global wealth demonstrated continued expansion in 2024, registering a 4.6% increase following a 4.2% rise in 2023, though this growth was markedly uneven across regions. North America, particularly the Americas, spearheaded this expansion with over 11% growth, significantly bolstered by a stable US dollar and buoyant financial markets, resulting in the highest average wealth per adult at USD 593,347. Conversely, Asia-Pacific (APAC) and Europe, the Middle East and Africa (EMEA) experienced subdued growth, below 3% and 0.5% respectively. Despite the overall positive trend, more than half of the 56 markets surveyed saw a decline in average wealth per adult in real USD terms. Switzerland maintained its leading position for average wealth per adult on an individual market basis, with countries like Denmark, South Korea, and Sweden recording double-digit growth in local currency terms. The number of USD millionaires globally rose by 1.2%, an addition of over 684,000 individuals, with the US contributing more than 379,000 to this figure and hosting nearly 40% of the world's millionaires. A significant emerging trend is the rise of 'Everyday Millionaires' (EMILLIs), individuals with USD 1-5 million in investable assets; this group has quadrupled since 2000 to approximately 52 million, commanding USD 107 trillion in wealth, largely driven by appreciating real estate and exchange rate dynamics. Generational wealth data from the US indicates Baby Boomers hold the largest share (over USD 83 trillion), while Millennials show a higher propensity for investments in consumer durables, real estate, and private businesses. Asset allocation varies globally, with the US emphasizing financial investments, Australia real estate, and Singapore insurance and pensions. Looking forward, projections indicate sustained wealth growth over the next five years, led by the US, Greater China, Latin America, and Oceania. Furthermore, a substantial wealth transfer exceeding USD 83 trillion is anticipated over the next two to two-and-a-half decades, primarily intergenerationally, with the largest volumes expected in the US, Brazil, and mainland China. This evolving wealth landscape, as noted by UBS economists, underscores shifts in wealth ownership and the enduring importance of property and long-term asset trends.

Key Decisions for Investors

• Consider overweighting North American equities and financial assets given the region's superior wealth growth driven by strong market performance and a stable US dollar, while adopting a more selective approach to APAC and EMEA due to their lagging growth and currency vulnerabilities.
• Evaluate opportunities to cater to the rapidly expanding 'Everyday Millionaire' (EMILLI) segment, particularly through real estate investments and specialized financial advisory services tailored to their USD 1-5 million asset base.
• Position portfolios to capitalize on the impending multi-trillion dollar intergenerational wealth transfer by investing in sectors such as wealth management, estate planning, and luxury goods, especially in key markets like the US, Brazil, and China.
• Monitor currency fluctuations closely, as the report indicates significant divergence between local currency wealth growth and real USD-denominated wealth, impacting international investment returns and asset valuations.
• Acknowledge the long-term positive trend in global wealth accumulation, but diversify across asset classes and geographies, paying particular attention to regions projected for future growth like Greater China and Latin America, alongside established leaders such as the US.