British dollar millionaires to fall behind rest of the rich world

 
Jasper Jolly
Follow Jasper
City Bonuses Reach Record High
Britain's millionaires will be fewer and further between, according to Credit Suisse (Source: Getty)

The number of millionaires will fall in the UK over the next five years, bucking the trend of double-digit growth across most other major economies, according to a new report published today.

There are currently 2.19m US dollar millionaires in the UK, according to research by Credit Suisse. However, the Swiss bank forecasts that number will fall by three per cent by 2022 to reach 2.13m, citing "the expected poor performance of the United Kingdom [economy] after Brexit".

The report, widely seen as one of the most authoritative sources on global wealth, showed wealth per adult declined by one per cent over the course of 2016 in dollar terms, mainly because of the fall in the value of sterling after the Brexit vote.

Read more: Here's how much billionaires have increased their wealth

Country 2017 ('000) 2022 ('000) Change (%)
US 15356 17784 16%
Japan 2693 3821 42%
UK 2189 2126 -3%
Germany 1959 2240 14%
China 1953 2748 41%
France 1949 2258 16%
Italy 1288 1451 13%
Australia 1160 1699 46%
Canada 1078 1453 35%
Korea 686 972 42%
Switzerland 594 670 13%
Spain 428 506 18%
Taiwan 381 501 31%
Belgium 340 405 19%
Sweden 335 408 22%
Netherlands 335 373 11%
Austria 250 287 15%
India 245 372 52%
Brazil 164 296 81%
Russia 132 196 49%
Hong Kong 119 138 16%
Mexico 84 88 5%
Argentina 30 68 127%
Africa 121 210 73%
Asia-Pacific 6069 8552 41%
China 1953 2748 41%
Europe 10763 12115 13%
India 245 372 52%
Latin America 460 706 54%
North America 16440 19245 17%
World 36051 43948 22%

The FTSE 100 has surged since the vote, in part because of the higher sterling value of dollar earnings after the currency crash. However, that was not enough to offset the decline in the dollar value of British-held assets.

In dollar terms wealth per adult in the UK is still 14 per cent below the level reached in 2007, the last year before the global financial crisis took hold.

Under the Credit Suisse model the number of British dollar millionaires will lag behind the US and Japan, which will see increases of 16 per cent and 42 per cent respectively in the number of people to reach the psychologically important mark.

The US remained far ahead of other nations in terms of the number of millionaires, almost half of the 36m worldwide. The world's richest nation gained more than one million millionaires during the last year.

Total global wealth rose by 6.4 per cent in the year to mid-2017, the fastest pace since 2012. Wealth has been boosted by the rise in equity markets which pushed global wealth above the 2007 level for the first time.

Worldwide wealth stood at $280 trillion at the middle of the year. Global GDP, for comparison, reached $75.5 trillion in 2016, according to the World Bank.

Read more: Ranked: These are the world's largest money managers

Related articles