Wealthy people learned how to protect their wealth. Different strategies used but main one is relocation to safer place. (financially, personally, religiously)
Global wealth migration is not new practice but now more common. Classification by net worth:
- Mass affluent: $100.000 – $1.000.000.
- Millionaire (high net worth individuals): more than $1.000.000.
- Multi-millionaire: more than $10.000.000.
- Billionaires: more than $1 billion.
In 2018 combined world-wide private wealth crossed $317 trillion (according to Credit Suisse Global Wealth Report 2018). By 2023 expected $399 trillion combined global wealth.
Number of millionaires and mass affluents are different in various sources. In many countries with grey economy and tax avoidance impossible to acquire accurate data.
List of top 10 wealthiest countries in the world according to NWWealth (Global Wealth Migration Review):
- United States. Tension about immigration policy. High net worth individuals shifted preference from US to Australia and New Zealand).
- China. Slow-down in economic growth and strict Government policy influence on outflow of high net worth individuals.
- Japan. Unique culture and language in most cases act as a barrier for immigration.
- United Kingdom. Current instability because of Brexit and £ depreciation resulted in wealth migration out of the country.
- Germany. Leading European Union county with strongest economy attract high net worth individuals.
- India. Fastest growing country with promising future.
- France. Religiously tolerant country with strong economy.
- Canada. Country actively attract immigrants because of low density of population and huge territory.
- Australia. One of the best country to live balanced life. Easy immigration policy and low inheritance tax.
- Italy. Art and strong economy. Country famous for healthy lifestyle.
On another side of spectrum countries with worst performing market (according to Global Wealth Migration Review by NWWealth):
- Pakistan. Debt traped economy with and China’s Belt and Road investments.
- Nigeria. Fast growing economy with undeveloped infrastructure and low literacy rate. Coastal cities flooded because of rising ocean levels.
- Venezuela. Government instability, anti-government protesters, extreme inflation, depending on oil.
- Turkey. Geopolitical tensions.
- Qatar. Dependant on limited hydrocarbons reserve and in need of fast economy diversification.
- Russian Federation. Rubble devaluation, sanctions, poverty, only 30% of Russian landmass suitable for humans.
- Iran. Geopolitical tensions and sanctions over nuclear program.
- Saudi Arabia. Economy depends on hydrocarbons, harsh climate, slow economy diversification, small percent of employed women because of religion related believes.
Wealth inequality is a major problem worldwide. In ideal situation less than 30% of country’s wealth should be controlled by high net worth citizens. Here’s list of most equal countries in the world according to NWWealth:
- Japan 23%.
- New Zealand.
- South Korea.
- Finland 29%.
List of most unequal countries based on percent of wealth held by high net worth individuals:
- Saudi Arabia 60%.
- Russia 58%.
- Turkey 52%.
Unequal distribution of wealth created league of extra rich people in predominantly poor society.
High net worth individuals while immigration choose to live in big cities with high wealth concentration:
- USA: New York, San Francisco, Los Angeles, Chicago.
- China: Beijing, Shanghai, Shenzhen, Hong Kong, Macao.
- United Kingdom: London.
- Japan: Tokyo.
- Australia: Sydney, Melbourne.
- India: Mumbai, Delhi, Bangalore.
- Canada: Toronto.
- Germany: Frankfurt, Berlin.
- France: Paris.
Immigration of high net worth individuals (families) welcomed by majority of countries. But there’s another side: wealthy people first to leave the country unlike middle class.
Thanks for reading. Please follow and leave comments.