Wealth Report

 POWERING WEALTH CREATION While the global economy slowed through 2024, the resilience of the US helped prop up investor confidence. The trends powering wealth creation in 2023, including growth in financial markets led by equity markets and the bitcoin run, continued. And despite geopolitical tensions, resilient global trade further contributed to growth. THE AMERICAN CENTURY At the US$10 million+ level, the US is home to almost 39% of all wealthy individuals, nearly twice the level of the China. In the US$100 million+ bracket, the figure rises to over 40%. Despite our forecast that Asia will outpace North America in wealth creation over the next four years, there is no realistic challenge to US dominance. Outside of stock valuations, the much-heralded AI-powered boom has yet to arrive – if it does, the US and China seem poised to benefit more than any other country. AFRICA TO OUTPERFORM While North America and Asia lead the narrative, we believe Africa is poised to outperform in future wealth creation – in growth, if not in absolute terms. A fast-growing young population, rich natural resources, rapidly improving infrastructure, and significant foreign investment provide strong foundations, while the potential for significant growth in consumption from an expanding middle class is creating opportunities for entrepreneurs across manufacturing and services. THE TAX RESPONSE With many governments running record deficits and accumulating significant debt, the growth of private wealth presents a tempting target. Last year saw the UK government announce the end of the country’s 200-year-old nondomiciled tax regime, and France also made moves to target the wealthy. With wealth growing faster than the economy in most regions, this trend is likely to continue. Opponents of wealth taxes argue that targeting the world’s most mobile population is folly. However, proponents point to the UN Convention on International Tax Cooperation which, despite the new US administration’s views, could still have significant ramifications for wealth taxation.