Global Wealth Report: More dollar millionaires in SA, but also bigger inequality
The latest Global Wealth Report shows that the world became richer but it is a mixed picture, with most of the growth in North America.
The Global Wealth Report for 2025 shows an increase in global wealth, but unfortunately South Africa did not share in this growth, while the country continues to be one of the most unequal countries in the world. It did, however, see an increase in dollar millionaires.
UBS, a wealth manager and universal bank in Switzerland, compiles the Global Wealth Report with insights into personal wealth. The latest edition analyses 56 markets, estimated to represent over 92% of the world's wealth.
The world's wealth landscape continued to evolve In a year marked by shifting economic tides and the data in the report echoes this. According to the report, global wealth increased by 4.6% in 2024 after a 4.2% increase in 2023, but it also shows that South Africa experienced negative real growth in average wealth per adult in 2023 and 2024.
South Africa finds itself among the countries in negative territory for average as well as median wealth growth, alongside countries such as India, the UAE and Turkey.
ALSO READ: SA still the most unequal country in the world – Oxfam
Global Wealth Report shows inequality in SA
In addition, South Africa ranked third-highest in the world for wealth inequality, with a Gini Coefficient of 0.81, just behind Brazil (0.82) and Russia (0.82), and equal to the UAE.
This chart shows the wealth inequality in the world:
ALSO READ: Six South Africans on Forbes Real-Time Billionaire list
Global Wealth Report also had good news for SA
However, South Africa did see a positive increase in dollar millionaires with a growth rate just under 2% but still indicating increasing upper-tier wealth and supporting the wider Everyday Millionaire trend.
As an emerging market, South Africa is listed as one of the 15 emerging economies that collectively hold up to 30% of global wealth as of 2024, a statistic that has remained relatively flat since 2017.
Iqbal Khan, co-president of UBS Global Wealth Management, says the speed of growth was far from uniform, largely tilted towards North America, with the Americas overall accounting for the majority of the increase, with more than 11%.
'A stable US dollar and buoyant financial markets were key contributors to this growth. Asia-Pacific and Europe, the Middle East and Africa (EMEA) were lagging behind, with growth rates of below 3% and less than 0.5% respectively.'
ALSO READ: Where do the super-rich in SA live?
Trends identified in the Global Wealth Report
The 16th edition of the Global Wealth Report highlights these regional and demographic themes:
Adults in North America were the wealthiest on average ($593 347) in 2024, followed by Oceania ($496 696) and Western Europe ($287 688).
However, measured in US dollar, in real terms over half of the 56 markets in the sample not only did not take part in the world's growth last year, but saw their average wealth per adult decline.
Despite this, Switzerland continued to top the list for average wealth per adult on an individual market level, followed by the US, Hong Kong and Luxembourg.
Denmark, South Korea, Sweden, Ireland, Poland and Croatia recorded the biggest increases in average wealth, all growing at double-digit rates when measured in local currencies.
The number of dollar millionaires increased by 1.2% in 2024, an increase of more than 684 000 people compared to the previous year, with the US adding over 379 000 new millionaires – more than 1 000 a day.
The US, mainland China and France had the highest number of dollar millionaires, with the US accounting for almost 40% of global millionaires.
There has been a marked and consistent increase in wealth all across the world over the past 25 years, both overall and in each main region individually. Total wealth increased at a compound annual growth rate of 3.4% since 2000.
This decade, the wealth band below $10 000 ceased to be the most populated one in the sample, overtaken by the next-higher band between $10 000 and $100 000.
Over the next five years, the report's projections for average wealth per adult point to continued growth, with the expansion led by the US as well as Greater China, Latin America and Oceania.
ALSO READ: Bill Gates explains why his children will inherit less than 1% of his wealth
This chart shows the change in total personal wealth from 203 to 2024:
Khan also points out that this year's report highlights the rise of the Everyday MILLIonaire (EMILLIs), everyday millionaires with investable assets of between $1 million to $5 million. Their numbers have more than quadrupled since 2000, reaching around 52 million globally by the end of last year.
This group now accounts for approximately $107 trillion in total wealth, approaching the $119 trillion held by individuals with over $5 million in assets. Khan says the growth of this segment has largely been driven by increasing real estate prices and exchange rate effects.
'Despite regional differences, the long-term upward trend in the Everyday Millionaire group is visible around the globe.'
ALSO READ: Want to build wealth? This is how
Differences in wealth distribution among generations
The Global Wealth Report also highlights the differences in wealth distribution among generations in the US. It shows that Millennials (born after 1981) have the highest proportion of their assets in consumer durables and real estate and invest more heavily in private businesses.
Baby Boomers (born between 1946 and 1964) hold over $83 trillion in net wealth, far surpassing Generation X (born between 1965 and 1980), the Silent Generation (born before 1945) and Millennials.
Khan points out that globally, wealth allocation also varies, with the US standing out with its high allocation in financial investments, Australia in real estate and Singapore in insurance and pensions.
'Over the next 20–25 years, more than $83 trillion is expected to be transferred, with $9 trillion moving horizontally between spouses and $74 trillion moving between generations. The largest volume of wealth transfers is anticipated in the US of over $29 trillion, Brazil with nearly $9 trillion and mainland China with more than $5 trillion).
ALSO READ: Wealth gap widens, ANC dodges wealth tax
Global wealth expected to grow
Robert Karofsky, co-president of UBS Global Wealth Management, says with global wealth expected to continue to grow, the ability to manage that wealth in a dynamic and complex financial environment becomes even more important, requiring strategic foresight and expert guidance.
Paul Donovan, chief economist at UBS Global Wealth Management, notes that wealth is not just an economic measure but a social and political force. 'As we navigate the fourth industrial revolution and increasing public debt, the way wealth is distributed and transferred will shape opportunity, policy and progress.
'This year's report underscores the evolutionary shifts in wealth ownership, especially the growing influence of women and the enduring importance of property and long-term asset trends.'
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The Citizen
5 hours ago
- The Citizen
Global Wealth Report: More dollar millionaires in SA, but also bigger inequality
The latest Global Wealth Report shows that the world became richer but it is a mixed picture, with most of the growth in North America. The Global Wealth Report for 2025 shows an increase in global wealth, but unfortunately South Africa did not share in this growth, while the country continues to be one of the most unequal countries in the world. It did, however, see an increase in dollar millionaires. UBS, a wealth manager and universal bank in Switzerland, compiles the Global Wealth Report with insights into personal wealth. The latest edition analyses 56 markets, estimated to represent over 92% of the world's wealth. The world's wealth landscape continued to evolve In a year marked by shifting economic tides and the data in the report echoes this. According to the report, global wealth increased by 4.6% in 2024 after a 4.2% increase in 2023, but it also shows that South Africa experienced negative real growth in average wealth per adult in 2023 and 2024. South Africa finds itself among the countries in negative territory for average as well as median wealth growth, alongside countries such as India, the UAE and Turkey. ALSO READ: SA still the most unequal country in the world – Oxfam Global Wealth Report shows inequality in SA In addition, South Africa ranked third-highest in the world for wealth inequality, with a Gini Coefficient of 0.81, just behind Brazil (0.82) and Russia (0.82), and equal to the UAE. This chart shows the wealth inequality in the world: ALSO READ: Six South Africans on Forbes Real-Time Billionaire list Global Wealth Report also had good news for SA However, South Africa did see a positive increase in dollar millionaires with a growth rate just under 2% but still indicating increasing upper-tier wealth and supporting the wider Everyday Millionaire trend. As an emerging market, South Africa is listed as one of the 15 emerging economies that collectively hold up to 30% of global wealth as of 2024, a statistic that has remained relatively flat since 2017. Iqbal Khan, co-president of UBS Global Wealth Management, says the speed of growth was far from uniform, largely tilted towards North America, with the Americas overall accounting for the majority of the increase, with more than 11%. 'A stable US dollar and buoyant financial markets were key contributors to this growth. Asia-Pacific and Europe, the Middle East and Africa (EMEA) were lagging behind, with growth rates of below 3% and less than 0.5% respectively.' ALSO READ: Where do the super-rich in SA live? Trends identified in the Global Wealth Report The 16th edition of the Global Wealth Report highlights these regional and demographic themes: Adults in North America were the wealthiest on average ($593 347) in 2024, followed by Oceania ($496 696) and Western Europe ($287 688). However, measured in US dollar, in real terms over half of the 56 markets in the sample not only did not take part in the world's growth last year, but saw their average wealth per adult decline. Despite this, Switzerland continued to top the list for average wealth per adult on an individual market level, followed by the US, Hong Kong and Luxembourg. Denmark, South Korea, Sweden, Ireland, Poland and Croatia recorded the biggest increases in average wealth, all growing at double-digit rates when measured in local currencies. The number of dollar millionaires increased by 1.2% in 2024, an increase of more than 684 000 people compared to the previous year, with the US adding over 379 000 new millionaires – more than 1 000 a day. The US, mainland China and France had the highest number of dollar millionaires, with the US accounting for almost 40% of global millionaires. There has been a marked and consistent increase in wealth all across the world over the past 25 years, both overall and in each main region individually. Total wealth increased at a compound annual growth rate of 3.4% since 2000. This decade, the wealth band below $10 000 ceased to be the most populated one in the sample, overtaken by the next-higher band between $10 000 and $100 000. Over the next five years, the report's projections for average wealth per adult point to continued growth, with the expansion led by the US as well as Greater China, Latin America and Oceania. ALSO READ: Bill Gates explains why his children will inherit less than 1% of his wealth This chart shows the change in total personal wealth from 203 to 2024: Khan also points out that this year's report highlights the rise of the Everyday MILLIonaire (EMILLIs), everyday millionaires with investable assets of between $1 million to $5 million. Their numbers have more than quadrupled since 2000, reaching around 52 million globally by the end of last year. This group now accounts for approximately $107 trillion in total wealth, approaching the $119 trillion held by individuals with over $5 million in assets. Khan says the growth of this segment has largely been driven by increasing real estate prices and exchange rate effects. 'Despite regional differences, the long-term upward trend in the Everyday Millionaire group is visible around the globe.' ALSO READ: Want to build wealth? This is how Differences in wealth distribution among generations The Global Wealth Report also highlights the differences in wealth distribution among generations in the US. It shows that Millennials (born after 1981) have the highest proportion of their assets in consumer durables and real estate and invest more heavily in private businesses. Baby Boomers (born between 1946 and 1964) hold over $83 trillion in net wealth, far surpassing Generation X (born between 1965 and 1980), the Silent Generation (born before 1945) and Millennials. Khan points out that globally, wealth allocation also varies, with the US standing out with its high allocation in financial investments, Australia in real estate and Singapore in insurance and pensions. 'Over the next 20–25 years, more than $83 trillion is expected to be transferred, with $9 trillion moving horizontally between spouses and $74 trillion moving between generations. The largest volume of wealth transfers is anticipated in the US of over $29 trillion, Brazil with nearly $9 trillion and mainland China with more than $5 trillion). ALSO READ: Wealth gap widens, ANC dodges wealth tax Global wealth expected to grow Robert Karofsky, co-president of UBS Global Wealth Management, says with global wealth expected to continue to grow, the ability to manage that wealth in a dynamic and complex financial environment becomes even more important, requiring strategic foresight and expert guidance. Paul Donovan, chief economist at UBS Global Wealth Management, notes that wealth is not just an economic measure but a social and political force. 'As we navigate the fourth industrial revolution and increasing public debt, the way wealth is distributed and transferred will shape opportunity, policy and progress. 'This year's report underscores the evolutionary shifts in wealth ownership, especially the growing influence of women and the enduring importance of property and long-term asset trends.'
IOL News
9 hours ago
- IOL News
A stagnant economy: The driving force behind South Africa's unemployment crisis
The writer says that we cannot keep placing our economic hopes in the hands of a state that has repeatedly failed to deliver. Image: File THERE'S no denying that a misalignment between our education system and the demands of the economy is a driver of our unemployment crisis; it's been said often, and it holds up. We produce far too many graduates with qualifications that don't match what the market is looking for. Humanities graduates, in particular, tend to be cited as an example – and there's truth to this. However, to suggest that merely closing the skills gap will resolve unemployment is to oversimplify a much deeper crisis. This line of thinking implies that jobs are readily available, and that the only thing standing in the way is a lack of relevant skills. As appealing – and partly valid – as it may be, it doesn't capture the full picture. To be clear, aligning the education system more closely with the economy is undoubtedly important. It will improve the prospects of many graduates and create pockets of new employment. Nevertheless, the positive outcomes of such reform (in the broader picture) will likely be modest, and they won't come close to addressing the massive scale of unemployment that we're facing. Reframing the underlying issue The bigger problem – which we skirt around sometimes – is that our country just doesn't have enough jobs. Regardless of the skills they bring to the table, we have an economy that isn't creating nearly enough employment to absorb millions of people. As it stands, the most affected are those with little or no education, and those with qualifications that are oversupplied and out of sync with demand. But we would be making a mistake to assume that this crisis is limited to them. We're beginning to see signs that even those with in-demand skills are not as secure as many might think. The growing number of unemployed medical doctors, for instance, is not just an anomaly, but a warning. While this trend hasn't reached crisis proportions, it clearly indicates that no one is fully insulated from an economy that isn't growing at the level it should. All this points us to key questions that we should keep are: why is our economy failing to produce the jobs we so desperately need? What are the structural issues holding us back? And more importantly, how do we build an economy that can create employment for millions of South Africans and not just those with the 'right' skills? The answer to the first question is widely understood and requires no overstating. The ANC-led Government of National Unity (GNU) remains committed to an archaic and globally discredited economic orthodoxy that simply does not confront the structural roots of our unemployment crisis. To begin addressing this, we need to look at a few key areas that aren't silver bullets, but necessary foundations for any serious structural reform. Educational policy Political analyst Prince Mashele has consistently and correctly argued that fixing our education system must be a top priority. The dysfunction in basic education is well documented, but the deeper issue is that our entire system, from primary school through to college or university, is still poorly aligned with the practical and technical demands of our modern economy. We need to move away from an overly abstract approach to learning and focus more on what equips people to participate meaningfully in the economy. This shift needs to begin at the foundational level and not when learners are preparing to exit the system. Rethinking our growth formula The idea that the state must be central to any meaningful development or job creation strategy is taken as gospel in many circles. But ironically, it is this very gospel that has failed and lies at the heart of many of our economic problems. As Senior Associate of the Free Market Foundation (FMF) Nicholas Woode-Smith has often argued, it is the market, and not the state, that has the capacity to drive growth, innovation, and employment, provided the environment allows it. This environment must obviously be created by the state, but it must understand that its role is to facilitate growth and not dominate the economy. A bloated and inefficient public sector cannot absorb labour at scale through unsustainable programs or endless grants. It also cannot micromanage growth into existence. What we need is a more open market that isn't shackled by red tape and labour laws that protect incumbency at the cost of flexibility. The notion of "exploitation" that is often used to undermine this credible argument isn't only a subjective judgment, but also a distraction from the fact that real job creation demands dynamism. Even the People's Republic of China (PRC), which is often misrepresented as a successful model of state-led growth, actually built its economic miracle on the back of aggressive liberalisation and global market integration. We would do well to take note of this. Attracting foreign investment If investment is the oxygen of a growing economy, then ours has been gasping for breath for years. As political economist Phumlani Majozi has long warned, our country is not an attractive destination for substantial investment. Some of the reasons for this are not obscure. They include rampant crime, a financially repressive policy framework in Broad-Based Black Economic Empowerment (B-BBEE), infrastructure deficits, and ongoing energy insecurity. Taken together, these factors largely explain why foreign investment has not been flowing in. Naturally, the aforementioned challenges are only part of a much larger picture. There are other vital pillars of structural reform that receive far less attention than they should. Through its Liberty First policy initiative, the FMF, in line with core research findings of the annual Economic Freedom of the World (EFW) report, has identified five of them. Three of them – sound money, free trade, and secure private property rights – are especially worth highlighting here. Liberty first A stable currency is crucial for long-term investment and planning. Without it, both individuals and businesses struggle to make meaningful decisions about saving and investing. Free trade creates access to new markets, lowers costs, and increases consumer choice. Yet unfortunately, our country continues to lean more towards projectionist measures that do more harm than good. The third pillar, and arguably the most urgent, is the protection of private property rights. The recent signing of the Expropriation Act into law is deeply concerning and constitutes a direct attack on the very property rights of all South Africans. As FMF Head of Policy Martin Van Staden has recently posited, "nil compensation" is nothing but a formal and euphemistic way of saying zero. Worse still, the Act opens the door to abuse by allowing expropriation under the vague and sweeping label of "public interest". This creates legal ambiguity and deters much-needed investment. Without secure private property rights, our economy will remain stagnant and start to regress as productive activity slows and whatever little capital we have left flees. Ayanda Sakhile Zulu holds a BSocSci in Political Studies from the University of Pretoria and is an intern at the Free Market Foundation. Image: Free Market Foundation
IOL News
10 hours ago
- IOL News
South Africans face currency shock as rand stays stagnant against US dollar
Many South Africans were hopeful that their local currency would mirror this decline, allowing them to capitalise on the weakening greenback Image: Armand Hough/Independent Media South Africans who expected to score massively from the fact that the greenback has lost 10% against every other major currency this year are set for a sore surprise because the rand has barely budged against the dollar year-on-year. In fact, investors would have been better off putting R10,000 into pounds or even euros, with euros having provided the best return of R555.67 – or 5.6% year-on-year, IOL's calculations show. Based on a linear equation that doesn't include transaction costs, fees, or reinvestment of gains, the pound would have provided a return of R405.12, or 4.1%. While the rand had been gaining against the US currency given the greenback's weakness, the exchange rate went over R18 to the dollar again this week – effectively on par with a year ago. As a result, a R10,000 investment into the dollar would provide a negative return. Andre Cilliers, currency strategist at TreasuryONE, explained that the rand had lost ground as the dollar firmed and there was uncertainty over any US military action against Iran, which is keeping the local currency on the back foot for now. US President Donald Trump has variously indicated he would support Isreal in its fight against Iran, while also stating that this may not happen. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Bloomberg data indicated that, since Trump was inaugurated for his second term on January 20, the greenback has declined in value against the euro, pound and Swiss franc. This, it stated, was due to Trump's tariffs and his insistence that Federal Reserve Chaiman Jerome Powell lower interest rates. The Fed voted overnight to keep rates unchanged, the same position for all of 2025 so far. The last time the dollar plunged this much and this fast was in 2010 when the US Federal Reserve pumped more money into the economy to help deal with the ravages of the 2008 Global Financial Crisis, Bloomberg data showed. South Africa's rand is notoriously volatile. IOL
