Asia Witnesses the Biggest Drop in Ultra-Wealthy Population Globally in 2022

on

In its recent analysis, Altrata, a global data firm, provided insights into the sharp decline of around 11% that the population of Asia’s ultra-high-net-worth (UHNW) individuals—individuals with a net worth exceeding $30 million—experienced in 2022. This marked the steepest drop among all regions worldwide, leaving Asia with 108,370 UHNW individuals.

The report says that this decline is attributable to factors such as China’s stringent Covid measures, the conflict in Ukraine, and supply chain disruptions in the region. Technology-focussed markets such as South Korea and Taiwan took a significant hit due to the trade impacts arising from the war.

Together, Asia’s wealthiest had a cumulative net worth of $12.13 trillion, slightly ahead of Europe’s $11.73 trillion. Europe also experienced a decline of 7.1% in its UHNW population, totaling to 100,850 individuals. The report stressed the direct impact of the Ruso-Ukrainian crisis on the region.

Inflation induced due to Russia’s weaponization of Europe’s dependent energy supplies, risk aversion, and supply chain disturbance were all contributory factors of this descent.

Meanwhile, North America, with an amassed ultra-rich worth $16.47 trillion, faced a decrease of 4% in UHNW individuals down to 142,990, largely because of the rapid monetary tightening by the U.S. Federal Reserve.

Contrarily, regions like the Middle East, Latin America, and the Caribbean saw an expansion in their UHNW groups due to flourishing terms of trade invigorated by rising prices of exported goods.

India managed to see a 3% uptick in its UHNW population, its 7.8% economic growth for the quarter ending June 2022 being a significant driver.

As an overall observation in 2022, Altrata found a 5.4% global downturn in UHNW representation, a first in four years. The cause for this downturn is pointed towards the surge in inflation and the subsequent monetary tightening operations which had a pronounced impact on the capital market’s risk and returns overview.