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The Star
24-07-2025
- Business
- The Star
Roundup: UK to see world's largest millionaire exodus in 2025
LONDON, July 24 (Xinhua) -- The United Kingdom (UK) is projected to lose 16,500 millionaires this year, the most of any country globally, according to the Henley Private Wealth Migration Report 2025, released Thursday by investment migration consultancy Henley & Partners. The report forecasts that 142,000 high-net-worth individuals (HNWIs) will relocate internationally in 2025, with the UK experiencing the largest net outflow. In contrast, the United Arab Emirates is set to maintain its top position as the leading destination for wealth migration, expecting a net inflow of over 9,800 millionaires. For the first time, European Union powerhouses France, Spain and Germany are also expected to register net HNWI losses of 800, 500 and 400, respectively. Henley & Partners CEO Juerg Steffen said the data reflects not only shifts in tax regimes but also broader global opportunity dynamics. "The long-term implications for Europe and the UK's economic competitiveness and investment appeal are significant," he noted. While taxation is often cited as a key driver, other factors are at play. Economics expert Steve Nolan from Liverpool John Moores University pointed to diminishing tax loopholes, particularly in inheritance tax, as a growing concern for wealthy residents. "Being richer, they have more access to mobility. If taxes rise above a certain level, they're incentivized to leave," he said. Nolan added that emerging financial centers, especially in Asia and the Middle East, are becoming more competitive by offering favorable tax and investment environments. Migration expert Jacopo Zamboni attributed Germany's net millionaire loss to sluggish economic growth and a complex tax system, while also emphasizing personal motivations such as access to better education and safer living conditions. Despite Britain's projected outflows, London remains a prime destination for wealthy newcomers. Rowland Atkinson, chair in Inclusive Societies at the University of Sheffield, cautioned against exaggerated narratives of a "wealth exodus," saying the trend should be viewed as a signal rather than a crisis. German wealth advisor Willi Plattes echoed the sentiment that taxation is only one part of a broader picture. "In a world of uncertainty, mobility becomes one of the most valuable assets," he said.
The Star
09-07-2025
- Business
- The Star
Roundup: BoE warns of global economic risks amid U.S. tariff hikes
LONDON, July 9 (Xinhua) -- The Bank of England (BoE) warned Wednesday that the global economy faces rising downside risks, citing escalating U.S. tariffs. In its latest Financial Stability Report, Britain's central bank highlighted that tariff hikes, particularly by the U.S., are dampening global demand and weighing on business investment decisions. Disruptions to global supply chains and geopolitical tensions are also exacerbating uncertainty around inflation, it added. "Financial markets experienced a period of significant turbulence in April following announcements by the U.S. on trade policy," said BoE Deputy Governor for Financial Stability Sarah Breeden, adding that risks and uncertainties associated with geopolitical tensions, reduced co-operation on trade and international policy, and government finances globally are still elevated. Amid the tariff threat, the report noted the vulnerabilities of global household and corporate debt vulnerabilities. "Globally, household and corporate balance sheets remain healthy in aggregate but face headwinds in the context of an uncertain economic outlook," it said. Over the past six months, one of the big economic problems and chaos has been Washington's trade policy, said Steve Nolan, a senior lecturer in economics at Liverpool John Moores University. He added that the uncertainty of the trade policy "has had massive effects" on the markets and the bonds. Nolan's remarks echoed with the report, which warns that trade policy changes create particular difficulties for corporate sectors in impacted regions, resulting in reduced profits and increased manufacturing expenses. In the euro area, the report cautioned that the steel and automotive industries in the area are "particularly export-oriented and therefore tariff-sensitive," and the automotive industry receives a large share of bank lending. According to the European Central Bank's Financial Stability Review in May, trade frictions could significantly affect the resilience of euro area firms in key export-oriented industries. Intensifying trade frictions could worsen the outlook of firms, especially in the manufacturing sector. In terms of global public sector debt vulnerabilities, the report also highlighted that public debt-to-GDP ratios are rising globally. In Britain, sectors such as manufacturing, which are heavily reliant on U.S. demand, are especially exposed, with analysts warning that falling global consumption and rising production costs could affect British companies' profitability. Noting that a new trade agreement between Britain and the United States in May has brought some relief, the report cautioned that a further escalation in trade disputes globally could amplify financial stress and drag on economic growth.
