China will create millionaires more than seven times faster than the US in the five years through 2026: Credit Suisse Wealth Report

China will mint millionaires more than seven times faster than the US in the five years through 2026, despite the effects of inflation and the Russian invasion of Ukraine, which are likely to hamper global wealth creation, according to Credit Suisse’s Global Wealth Report 2022 published on Tuesday.

The number of US dollar millionaires in China will increase by 97 per cent to 12.2 million by 2026, compared with a 13 per cent rise in the US to 27.7 million wealthy individuals over the same period, according to projections by the Swiss bank.

“We expect household wealth in China to continue to catch up with the United States, advancing the equivalent of 14 US years between 2021 and 2026,” the report said. “Despite the inflation and Russia-Ukraine war setbacks, we believe that total global wealth will continue to grow.”

Household wealth in China grew by US$11.2 trillion last year, accounting for over a quarter of the total increase in global wealth of US$41.5 trillion in 2021. The world’s second-largest economy had 9.9 per cent of the global millionaire population at 6.2 million, behind the US, which had 39 per cent of the total or 24.5 million wealthy individuals.

While the US tops the world millionaire table and is still far ahead of second-place China, its dominance is set to slip amid limited GDP growth and the possibility that asset prices will subside from their peak values at the end of 2021, according to the report.