Global Millionaire numbers set to rise, U.K. faces decline: UBS report

London: According to the 2024 Global Wealth Report from UBS, the number of millionaires worldwide is expected to increase over the next five years, with the U.K. standing out as a significant exception.

The report projects that in 52 out of 56 surveyed developed and developing economies, the number of adults owning 1 million dolllars or more will grow from 2023 to 2028. Leading this growth is Taiwan, where the millionaire population is predicted to surge by 47 percent, driven by the booming microchip industry and an influx of wealthy immigrants.

Following Taiwan, Turkey is expected to see a 43 percent increase in millionaires, Kazakhstan 37 percent, Indonesia 32  percent, and Japan 28 percent. In the two countries with the highest number of millionaires, the U.S. and mainland China, millionaire numbers are anticipated to rise by 16 percent and 8 percent, respectively.

In stark contrast, the U.K. is forecasted to experience a 17 percent decline in its millionaire population. Paul Donovan, chief economist at UBS Global Wealth Management, remarked that the U.K. currently ranks third globally in the number of dollar millionaires, a position he suggests is disproportionate to its economic status.

Donovan explained that while countries like France and Italy, which are expected to see their millionaire numbers rise by 16 percent  and 9 percent , respectively, are experiencing natural growth, the U.K. is facing capital outflows influenced by various "push and pull" factors. These include shifts in global wealth distribution, sanctions against Russia affecting wealthy Russians who have historically invested in London, and the tendency of non-indigenous millionaires to seek low-tax locations such as Dubai and Singapore.

The recently elected center-left Labour Party was not cited as a reason for the decline. Instead, Donovan pointed to changes in the U.K.'s "non-domiciled status" tax regime initiated by the former Conservative government, noting they had a "small, not substantial" impact.

Meanwhile, the report also predicts a 21 percent  rise in the number of U.S. dollar millionaires in Russia, attributed to currency fluctuations and recent trends in commodity and energy markets benefiting business owners in those sectors.