The number of high net worth individuals (HNWI) increased by 5.1% in 2023, reaching a total wealth of $86.8 trillion, according to consulting firm Capgemini. This marks the highest number and total wealth of HNWIs since Capgemini began its annual study in 1997. The surge in wealth was driven by strong stock market performances, with the Nasdaq rising 43%, the S&P 500 gaining 24%, and the CAC 40 and DAX advancing by 16% and 20%, respectively.
Despite their growth, HNWI wealth had fallen by more than three percent in 2022 due to macroeconomic uncertainty and geopolitical tensions. However, the decline in wealth was not as steep as equities fell, but it was still the steepest in a decade. The reversal of this decline came in 2023 with economic growth and improved fortunes for major investment sectors. The surge in equity markets was fueled by enthusiasm for generative AI and its potential impact on the economy.
The rise in wealth and inequality has sparked debates about making the rich pay their fair share of taxes. Brazil and France have called on fellow G20 countries to establish a global minimum tax on the world’s wealthiest individuals to address these concerns.
