Number of world’s millionaires will grow in next five years

● The number of millionaires globally will grow by 40% in the next five years, even as rising rates and Russia’s war in Ukraine are sinking asset classes and private fortunes this year.

By 2026, there will be more than 87.5-million people with at least $1m (about R18m) in wealth, up from 62.5-million in 2021, according to Credit Suisse Group’s Global Wealth Report 2022 released this week.

The number will grow faster in emerging economies, with China almost doubling its millionaire population, the forecasts show.

The 500 richest people in the world lost $1.4trillion in cumulative fortune in the first half of the year, but Credit Suisse sees a fast recovery.

The Swiss bank expects China to keep creating huge wealth even as its economy is showing signs of strain amid Covid restrictions and crackdowns in sectors including tech and property. “Despite the inflation and Russia-Ukraine war setbacks, we believe that total global wealth will continue to grow,” the report said. “We expect household wealth in China to continue to catch up with the United States.”

Credit Suisse forecasts private fortunes will rise 36% to $169-trillion by 2026, with wealth per adult climbing 28% globally and surpassing $100,000 in 2024. The number of ultra-high networth individuals — those with more than $50m — will reach 385,000.

Developing markets were hit badly during the pandemic, and wealth growth slowed. But they regained momentum last year, and Credit Suisse expects them to narrow the gap with the developed world in the next five years.

Fortunes will climb 10% annually in emerging economies, compared with a 4.2% rise in high-income countries.