Despite the dire global conditions imposed by the COVID-19 pandemic last year, 2020 also witnessed a surge in wealth globally and a shift in rankings for the growth of net high-net-worth individuals. The number of individuals in the high-net-worth category grew by 9.6%, and their wealth increased by 9.1% compared to 2019. The Middle East recorded the highest growth rate in the number of high-net-worth individuals, with a 31.2% annual increase in 2020 and a 17.2% rise in their wealth.
Iran played a significant role in wealth growth in the Middle East, as the number of wealthy individuals rose by 24.5%, and their wealth increased by 27.3%. For the first time in five years, North America outpaced the Asia-Pacific region in the growth of high-net-worth individuals and the rapid increase of their wealth, according to the Global Wealth Report released by Capgemini on Tuesday.
### North America at the Top
North America accounted for 55% of approximately 1.2 million new individuals who joined the ranks of high-net-worth individuals in 2020, compared to 39% of the total 1.6 million wealthy individuals in 2019. North America also experienced an annual growth rate of 46% in wealth among the new wealthy group, up from 37% in 2019. On a country-by-country basis, high net worth in China increased by 13.5% in 2020 on a year-over-year basis, compared to 12.3% in the United States.
The annual report defines the group that includes individuals with investable wealth ranging from $1 million to $5 million as "new millionaires," those with $5 million to $30 million as "mid-tier," and individuals with wealth exceeding $30 million as "high wealth."
Globally, stock market gains contributed to a 6.3% increase in the ranks of high-net-worth individuals and a 7.6% growth in their wealth. Much of this accumulation of wealth is attributed to the thriving technology sector, not only due to the dominance of tech companies in the American stock markets such as Amazon, Apple, and Facebook but also the strong performance of tech stocks in South Korea and the booming semiconductor exports in Taiwan.
