Finance

COVID-19 and climate change contribute to the migration of wealth

The United States is the largest wealth market in the world with 32% of total global wealth and 36% of the world’s millionaires (high net worth people). Total private wealth held in our southern neighbors currently stands at $68.8 trillion. It is also the United States that has recorded the strongest growth in the wealthy population of the ten richest countries in the world in terms of “total wealth” (the W10), with an increase of 10%. China ranks second in the W10, but still lags far behind the United States with $23.3 trillion in private wealth. It is followed by Japan with a total private wealth of $20.1 trillion.

However, the situation should reverse somewhat in the coming years, according to the report. Thus, it is expected that the growth of the private wealth of the United States over ten years amounts to 20%, against 50% for China. Japan, meanwhile, is expected to grow by 30%.

“It is no coincidence that each of the W10 countries has legislation in place granting residency rights to foreign investors and that five of them host official investment migration schemes. These countries are important markets for investment migration both in terms of supply, thanks to their attractive and successful programs, and in terms of demand, due to their large and growing populations of high net worth investors,” explains Dr. Juerg Steffen, CEO of Henley & Partners.

The Henley Global Citizens Report also reveals that Indian nationals are by far the top of the applications received by the firm in 2021, with a growth of 54% compared to 2020. Then come American citizens, then British and South Africans.

“Other nationalities in our Top 10 Inquiries are all from the South, with the exception of Canada, in 9and position, which experienced a remarkable growth of 86%. In 2022, we see very similar trends, with early signs of overtaking last year’s exceptional overall growth. The combination of W10 countries and developing economies that make up our Top 10 reflects the universal appeal of investment migration for affluent families. In addition to the conventional benefits of increased global mobility, residency and citizenship-by-investment programs offer a proven risk-mitigation and growth-diversification strategy in terms of wealth and inheritance management, with an option to domiciliation offering an additional advantage in terms of quality of life,” says Dominic Volek, head of private clients at Henley & Partners.

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