The world has fewer billionaires and they are poorer, with their wealth shrinking to US$11.1 trillion as a year of ‘heightened volatility’ punishes ultra-wealthy
- The number of billionaires in the world fell 3.5 per cent to 3,194 and their aggregate wealth shrank by 5.5 per cent to US$11.1 trillion
- China, which has the second biggest billionaire population globally after the United States, led the decline in numbers
In the top 15 jurisdictions that hosted the world’s largest billionaire populations, only Singapore and Russia added to their numbers.
Cumulative wealth of the ultra-rich fell by 5.5 per cent to US$11.1 trillion, as surging inflation and global uncertainties eroded the value of their holdings, said the World Ultra Wealth Report published by New York-based Altrata which used data from its Wealth-X division.
China, which has the second biggest billionaire population globally after the United States, led the decline in numbers. Its billionaire count fell 11 per cent to 357 while the aggregate value of their wealth diminished by 9.3 per cent to US$1.3 trillion.
Global leader United States registered a 2.1 per cent fall in its billionaire count to 955, with a 5.2 per cent reduction in their wealth to US$4.2 trillion. This relatively modest fall meant the world’s largest economy widened its lead over China where sliding equities, Covid-19 lockdowns, real estate strains and a subdued economy stifled valuations, the report noted.
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“Even by recent standards, 2022 was a year of heightened volatility for the world economy, which emerged from a global pandemic to a new war in Europe, a generational surge in inflation, deepening US-China tensions and a reshaping of the geopolitical order,” the report said.
Downbeat economic indicators were a precursor to their shrinking fortunes.
The global economy grew by a mere 3.4 per cent, with lofty inflation ranging from 7.3 per cent in advanced economies to 9.8 per cent in emerging and developing economies. Meanwhile, the MSCI world index, a barometer of the performance of stock markets across the globe, tumbled 18 per cent. Maiden share offerings, on the other hand, declined in terms of absolute numbers as well as capital raised.
Billionaires in a range of fields, from consumer services to energy and healthcare to hospitality, saw their wealth decline by at least 5 per cent last year.
Following the US and China in the rankings were Germany, UK and India, respectively.
By attracting more individuals from the moneyed set, the number of billionaires in Singapore, ranked 13th, rose by 8 per cent to 54. Their aggregate wealth also increased 2.1 per cent to US$101 billion.
Russia, on the other hand, bucked the trend as its billionaires weathered the volatility of 2022 and the rouble kept its value despite sanctions following Moscow’s incursion into Ukraine.
“While the number of billionaires in Russia grew by five individuals to total 112 in 2022, their combined wealth grew by just short of 1 per cent,” said Maya Imberg, director at Wealth-X. “A country’s developments clearly influence billionaire wealth and their number, but it’s important to remember the small size of this particular population. So small individual changes show up in the numbers when the total size is small.”
