The world is becoming wealthier. According to a new report from The
Boston Consulting Group, global wealth grew by about 8% in 2010 to
$121.8 trillion. By the end of 2015 that amount is expected to increase
to about $162 trillion. Despite this, most people will not see large
increases in their personal fortunes anytime soon. This is because of
the the gap between the rich and poor is increasing.
24/7 Wall St.
looked at The Boston Consulting Group report "Shaping A New Tomorrow:
How To Capitalize on the Momentum of Change" to identify the 10 nations
with the highest total number of millionaire households. These countries
were then compared to countries with the highest numbers of households
with more than $100 million in AuM, as well as each country's GDP. The
probable causes for individual financial success were also considered,
including tax laws, industry and economic conditions.
The
countries with the most millionaires have a number of things in common.
They all have high GDPs, with only a few falling outside of the top ten
for all nations. Most have also embraced market-driven economies. Each
country also leads in at least one, and frequently multiple, industries
in which successful entrepreneurs benefit.
While China and the
United States both have among the greatest number of millionaire
households, they have among the highest rates of income inequality,
according to the United Nations. Millionaire households, or households
with $1 million or more in total AuM (assets under management),
represented just 0.9% of all households in 2010. These households own
39% of the total wealth, however. This is an increase from 37% in 2009.
As wealth increases, the amount that is owned by millionaires increases
dramatically.
This is 24/7 Wall St.'s countries with the most millionaires.
10. Hong Kong
> Millionaire Households: 200,000
> Ultra High Net Worth Households: 223
> GDP (millions of USD): 225,003 (N/A)
Hong
Kong, although not technically a sovereign country, has a largely free
market economy that relies on international trade and finance. It is
home to HSBC and Hang Seng Bank, two of the largest Chinese banks. It is
also home to Li Ka-shing, Forbes 11th richest man in the world, who
works in a number of businesses through Hutchison Whampoa Limited and
Cheung Kong Holdings. There is a flat 15% income tax and no capital
gains tax or sales tax. Hong Kong also has the fourth highest
concentration of millionaires, with 8.7% of all households having at
least one million dollars. The island also has the third highest
concentration of ultra-high-net-worth households, or those with $100
million or more.
9. France
> Millionaire Households: 210,000
> Ultra High Net Worth Households: 377
> GDP (millions of USD): 2,582,527 (5th highest)
France
has the fifth highest GDP in the world and the ninth greatest number of
millionaires. Over the last 15 years, a number of major French
companies, such as Air France and France Telecom, have become either
partly or totally privatized, giving rise to a new class of
millionaires, like Stephane Richard, CEO of France Telecom. France has
also alienated the wealthy in the past with policies such as the ISF
tax, or wealth tax, which was passed in 1989 by Socialist president
Francois Mitterand. The tax is an annual tax on French citizens with
assets of more than roughly $1.1 million. Many politicians, including
President Nicolas Sarkozy, have recently called for reform of the tax,
saying that it drives wealthy individuals out of the country.
8. Italy
> Millionaire Households: 270,000
> Ultra High Net Worth Households: 494
> GDP (millions of USD): 2,055,114 (8th highest)
Italy's
ranking for number of millionaires fell from 6th in 2009 to 8th in
2011. This is probably the result of the international financial crisis
worsening economic conditions in the country. Unemployment alone has
risen from 6.2% in 2007 to 8.4% as of March 2011, according to the U.S.
Bureau of Labor Statistics. Factors such as this can end up hurting even
big earners. Regardless, the country is home to a large community of
millionaires and billionaires. The Italian economy includes many
companies which produce consumer goods such as automobiles, and
textiles.
7. Taiwan
> Millionaire Households: 280,000
> Ultra High Net Worth Households: N/A
> GDP (millions of USD): 430,580 (24th highest)
Over
the past decade, a number of large banks and financial institutions in
Taiwan have been privatized. Taiwan is also known for its electronics
and machinery industries, which generate approximately 70% of its GDP
growth. Taiwan has begun to face a major wealth gap, however, with the
average household income of the top 20% of earners being 6.34 times that
of the bottom 20%. The government is considering passing a "luxury tax"
to fight this which would be levied on investment housing transactions,
private jets, and other luxury items, according to The Christian
Science Monitor.
6. Switzerland
> Millionaire Households: 330,000
> Ultra High Net Worth Households: 352
> GDP (millions of USD): 523,772 (19th highest)
Switzerland
has a highly developed services sector which benefits its economy
greatly. Nearly 10% of households in the country have $1 million or
more, more than double that of the United States. The country is a major
center for financial services and is home to firms such as UBS, the
world's second largest manager of private wealth assets. Other big
employers include Novartis and Nestle. Switzerland has been an
attractive destination for wealthy individuals, partly because
foreigners did not need to declare their incomes or assets. In 2009,
this rule was overturned. This may cause many millionaires, such as
French singer Johnny Hallyday, who moved to Switzerland in 2006 to avoid
French taxes, to leave the country.
5. Germany
> Millionaire Households: 400,000
> Ultra High Net Worth Households: 839
> GDP (millions of USD): 3,315,643 (4th highest)
Germany
has the fifth largest economy in the world and the fifth largest number
of millionaire households. The country is a leader in a number of major
industries, producing large amounts of machinery, automobiles,
chemicals, and more. Germany is home to Deutsche Bank, the world's
largest foreign exchange dealer, as well as Siemens, the largest
engineering conglomerate in Europe. Some of Germany's richest are tied
to the automobile industry including BMW heiress Susanne Klatten and the
Porsche family.
4. United Kingdom
> Millionaire Households: 570,000
> Ultra High Net Worth Households: 738
> GDP (millions of USD): 2,247,455 (6th highest)
Although
the United Kingdom has large coal, gas, and oil resources, its main
sources of GDP are services such as insurance, banking and business
services. The number of millionaires increased dramatically after the
Labour Party came into power in 1997 and enacted tax cuts, according to
the Telegraph. The wealthy in the UK now range from Virgin CEO Richard
Branson, to steel magnate Lakshmi Mittal, to Queen Elizabeth.
3. China
> Millionaire Households: 1,110,000
> Ultra High Net Worth Households: 393
> GDP (millions of USD): 5,878,257 (2nd highest)
Since
the late 1970s, China has undergone a transformation from a largely
centrally planned economy to one that is much more market-oriented. Many
industries which were once government-controlled, such as oil, gas, and
steel, have since been privatized to much success. As a result, its GDP
has increased more than ten times what it was in 1978. The country is
now an integral part of the world economy. As of 2010, China is the
world's largest exporter. According to The Boston Consulting Group,
wealth in China will grow at a compound annual rate of 18% between the
end of 2010 and the end of 2015. Among the richest people in the country
is Robin Li, co-founder and CEO of Baidu, China's most popular search
engine. Li is currently estimated to have a fortune of about $9.4
billion.
2. Japan
> Millionaire Households: 1,530,000
> Ultra High Net Worth Households: N/A
> GDP (millions of USD): 5,458,872 (3rd highest)
Japan's
economy relies on strong cooperation between government and private
companies, largely connected through subsidies, and a strong work ethic
that is a part of Japanese culture. Major industries in the country
include consumer electronics, automobiles, computers, petrochemicals,
iron and steel, and pharmaceuticals. Major companies such as Toyota,
Honda, and Sony, ensure that the country's GDP remains high. Top earners
in the country include retail magnate Tadashi Yanai, owner of Uniqlo
and other brands, and Hiroshi Yamauchi, the man credited with turning
Nintendo into the video game powerhouse it is today.
1. United States
> Millionaire Households: 5,220,000
> Ultra High Net Worth Households: 2,692
> GDP (millions of USD): 14,657,800 (highest)
The
United States has by far the largest amount of millionaire households,
as well as ultra-high-net-worth-households. The U.S. is home to the
largest economy in the world — almost three times the size of China's,
the next biggest. There is also a growing income gap in the country. In
2009, the top 20% of earners, or those making $100,000 or more a year,
made half of all income generated in the country, according to the US
Census. The bottom 20% made only 3.4%.
24/7 Wall St. is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.
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