Europe has no chance to increase its centi-millionaires

But that is no longer the reality. When it comes to multi-millionaires who shop themselves until they drop, Europe is far – really far – behind its Asian and American counterparts, Henley & Partners’ latest Centi-Millionaire report shows.

The report examines the growth of ultra-wealthy individuals whose wealth exceeds $100 million between 2013 and 2023. This group has exploded by more than 50% in those 10 years, with nearly 30,000 individuals joining the elite club.

However, the stunning increase in wealth has not been matched – if anything, Europe lags behind by a long margin. The number of centi-millionaires grew by only 26%, or half the world growth rate.

“It is clear that the story of the centimillionaire is one of dynamism and change. From the tech booms in China and the US to the emergence of new wealth centers around the world, the geography of extreme affluence is shifting away from Europe,” said Juerg Steffen, CEO of Henley & Partners, which analyzes private wealth and trends. immigration.

The trend won’t stop anytime soon. London will be the biggest loser in continental Europe, with the fewest centi-millionaires to be added to the ever-growing list between now and 2040. Moscow, Zurich and Madrid will also follow suit.

Meanwhile, the likes of Dubai and Shenzhen will become the market ground for the new centi-millionaires, the report suggests.

However, the hidden gems of European wealth lie in some of the more underrated parts of the region. Consider Monaco, Malta and Poland, where the number of multi-millionaires can be expected to increase by 75% or more.

The trend of the wealthy fleeing Europe has been driven by a confluence of things, including greater political uncertainty, changing tax policies in Italy and the UK and years of weak trading compared to competition on both sides of the globe. And of course, Europe has Bernard Arnault and Mark Mateschitz, who are high-profile billionaires who have seen their business empires grow enormously. But the US has benefited more from wealth migration, greater stock market liquidity and overall wealth creation.

Another time Europe

If only Europe could bring back its glory days.

In the not-so-distant past, Britain and France were some of the wealthiest countries on the continent and in the world. The European region and all its economies grew even after the Industrial Revolution.

Ironically, the trend of wealth transfer has in some respects reversed. Now more people are fleeing countries like the UK, exacerbated by Brexit.

Britain alone could lose 500,000 millionaires over the next five years, according to a July UBS Wealth report. Belgium, Germany and Spain will be among the destinations for Britain’s wealthy looking for a better place to park their cash.

For now, there are still some pockets where wealth can be made, including Paris, the European city with the highest ranking by increasing the number of centi-millionaires.

The question remains: What will happen to Europe and its people if it inhibits future wealth creation relative to the rest of the world?