A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide for the high-net-worth investor and consumer. Sign up to receive future issues, straight to your inbox.
The United States has quickly overtaken China as the world's number one place for millionaires and billionaires, according to a new report. a
More than 5.5 million Americans now have more than $1 million in investable liquid assets, up 62% over the past decade and well above the global growth rate of 38%, according to the 2024 American Wealth Report from Henley & Partners and New World. Wealth.
Over the past five years, the number of millionaires in the United States has increased by 35%, nearly twice as fast as China's growth. The United States is now home to 37% of the world's millionaires, up from 35% in 2018.
Inequality grows greatest at the top of the wealth ladder. There are 9,850 millionaires in the United States – those worth $100 million or more – compared to 2,352 millionaires in China. There are about 788 billionaires in the United States, compared to 305 in China.
“The United States remains the undisputed leader in the world in creating and accumulating private wealth,” the report stated.
Strict coronavirus lockdowns in China coupled with increases in government intervention in the private sector have slowed wealth creation growth, said Dominic Volek, head of Henley's private sector client group.
“China certainly slowed down a lot due to these factors, and the United States benefited,” he said.
The shift from China to the United States is also reflected in patterns of wealth migration. A net 13,500 Chinese millionaires left China in 2023, a new record. The United States had a net influx of 2,200 millionaires in 2023 and a projected influx of 3,500 in 2024, according to the Henley Report.
“The United States continues to be the largest magnet for wealthy technology entrepreneurs and engineers, especially from Asia, Europe, and the United Kingdom,” the report said.
America's leadership in wealth creation extends to spending and investment. A report by UBS and Art Basel found that the United States is the leader in global art sales, accounting for 42% of sales by value. The United States also leads the world in pricier business sales.
Bain now expects China to account for only 35% to 40% of global consumption of luxury goods by 2030, only a slight rise from current levels. Total spending on luxury goods in China is about 40% lower than in 2019, according to Bain. Bain found that total sales of luxury products in the United States last year amounted to $80 billion, compared to $52 billion in China.
While analysts and economists say that China will remain a major source of prosperity and wealth growth in the coming years, the United States has become the dominant market and source of growth for the high-wealth economy.
“The opportunities for wealth creation in the United States are unparalleled in the world,” Volek said.
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