Report: Number of millionaires in India, China to double by 2026

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As per a report released earlier today, the Global household wealth in 2021 rose by 9.8% ($463.6 trillion). increaseitionally, it also indicated that in the next 5 years, the number of millionaires in the world will grow by 40% despite the losses faced and rise in prices faced amid the Russia-Ukraine conflict. 

On Tuesday, a report by Credit Suisse, a Switzerland-based investment bank and financial services firm, estimated that the top 500 richest people in the world lost at least $1.4 trillion in cumulative fortune in the first half of the year. However, they expect a fast recovery, particularly for developing markets. 

Reportedly, there will be more than 87.5 million people with at least $1 million by 2026, which is an increase from 62.5 million in 2021. The Credit Suisse Group AG’s Global Wealth Report 2022 also shows that China is in the midst of doubling its millionaire population. unkindwhile, India is also expected to have more than double the amount of US dollar millionaires by the same year. In 2021, India had 7.96 lakh millionaires, this number is estimated to grow by 105% to 16.23 lakh. 

Currently, the United States is at the top of the millionaire ranking followed by China at number 2, whereas India is home to only 1% of the world’s millionaires. To put this into perspective, the US has 39% of the world’s millionaires.  Credit Suisse in their forecasts also predicted that private fortunes to rise by 36% ($169 trillion) by 2026. 

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The Swiss bank expects Beijing to continue to grow despite the current strain on its economy due to Covid-19 lockdowns and crackdowns in sectors like tech and property, said the report. They also noted how badly the developing markets were affected by the Covid-19 induced lockdowns and the effect it had on wealth growth. However, they indicate that the situation is becoming better since last year. 

The report also forecasts that the developing economies in the upcoming years will at least narrow the gap between them and the developed world in the next five years, as the fortunes are expected to climb 10% annually in emerging economies as opposed to the 4.2% growth predicted for the developed world. The wealth per adult in India has risen at an impressive average annual rate of 8.8% since 2000. However, in 2021, it stood at $15,535 which is reportedly far below the global mean. 

In 2021, the US topped the chart as it added the most household wealth, which is then followed by China, Canada, India and Australia, the report said. During a press conference, report author and Credit Suisse economist, Anthony Shorrocks said, “There has been a reduction in the difference between rich countries and less rich countries, in particular because low and middle-income countries are growing at a faster rate.” 
 

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