The world’s wealthiest individuals have experienced a significant increase in their fortunes this year, thanks to the booming stock markets. According to Capgemini’s annual study, the number of high net worth individuals (HNWI) with liquid assets of at least $1 million increased by 5.1 percent in 2023 to 22.8 million. Their total combined wealth reached $86.8 trillion, marking a 4.7 percent increase from the previous year.
This represents the highest number of HNWI and their total wealth since Capgemini began conducting its annual study in 1997. Stock indices such as New York’s Nasdaq, S&P 500, Paris CAC 40, and Frankfurt DAX all experienced significant gains in 2023, with some increasing by as much as 43 percent.
The report notes that economic growth and improved fortunes in major investment sectors helped offset the losses from the previous year. The surge in equities, particularly in the tech market, buoyed by enthusiasm for generative AI and its potential impact on the economy, was largely responsible for this turnaround.
However, this growing wealth and inequality worldwide have sparked discussions on the need for the rich to pay their fair share of taxes. Countries like Brazil and France have been advocating for a global minimum tax on the world’s wealthiest individuals at the G20 level. As wealth continues to concentrate among a select few, calls for redistributive measures to address economic disparities are becoming more prominent on the global stage.
Despite this controversy surrounding their wealth gains, there is no denying that HNWI have had an exceptional year thanks to booming stock markets worldwide.
