In 2023, the number of “high net worth individuals” (HNWI) reached a record high of 22.8 million, with their total wealth amounting to $86.8 trillion. This represents a 5.1 percent increase in the number of HNWI and a 4.7 percent increase in their wealth compared to the previous year. These figures mark the highest number of HNWI and the largest total wealth recorded since the annual study began in 1997.
The surge in stock markets around the world has bolstered the fortunes of super rich individuals. Major indices such as the Nasdaq, S&P 500, CAC 40, and DAX saw significant growth in 2023, reversing a decline in wealth that was observed in 2022 when equities fell sharply due to macroeconomic uncertainty and geopolitical tensions. The strong performance of these indices can be attributed to economic growth and improved fortunes in major investment sectors. Tech stocks, particularly those related to generative AI, saw significant gains due to enthusiasm for this emerging technology’s potential impact on the economy. Despite ongoing uncertainty surrounding interest rates and rising bond yields, equities remained strong throughout the year.
The increasing wealth and inequality in society have led to debates about taxing high net worth individuals more fairly. Countries such as Brazil and France have called for a global minimum tax on wealthy individuals as a way to address this issue as it continues to rise along with their wealth growth. As discussions around taxing super rich individuals continue into future years, we can expect further scrutiny of economic policies that contribute to growing inequality and calls for greater redistribution of wealth among all members of society.
