The number of millionaires in China will double by 2026
According to a report by Credit Suisse, the number of millionaires in China is set to double by 2026, despite the severe economic downturn and Beijing’s campaign to reduce inequality. The total wealth of Chinese households reached $85.1 trillion in 2021, an increase of 15.1% or $11.2 trillion compared to 2020. In 2021, China had 6.2 million millionaires, more than a million more than 2020’s According to the Swiss bank, the number should double within five years to 12.2 million.
These forecasts appear optimistic as the world’s second-biggest economy was on the verge of contraction in the second quarter, impacted by COVID-19 measures and the collapse of the housing sector. Contributing to the slowdown are Beijing’s official rhetoric of “shared prosperity,” which has strengthened in recent years, and the government’s stranglehold on sectors like technology and education, which has shaken investor confidence.
An optimistic outlook
Global household wealth grew 12.7% in 2021, the fastest annual rate on record excluding currency factors, but the outlook is clouded by geopolitical and financial uncertainties.
“It’s probably too early to fully assess the impact of inflation, the Ukraine crisis and the supply chain crisis, but we’re likely to see some reversals in global wealth growth in 2022,” said Axel Lehmann, Chairman of the Board of Directors of Credit Suisse. However, the bank remains optimistic about growth prospects over the next five years, with global household wealth projected to increase by $169 trillion by 2026.
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