Where Are the World's Millionaires Headed?

Written by Timothy Misir

Global wealth migration is accelerating. About 108,000 millionaires migrated in 2018 compared to 95,000 the year before. Where did they go to?

Australia is the most popular destination in the world for migrating millionaires, welcoming some 12,000 high net worth individuals (HNWIs) – defined as individuals with a net worth of US$1 million or more – in the past year, according to the Global Wealth Migration Review 2019 published by AfrAsia Bank and research partner New World Wealth.

The report looks at wealth and wealth migration trends over the past 10 years, encompassing 90 countries and 150 cities, including all major markets.

Three Factors

Singapore, which welcomed 1,000 HNWIs in 2018, was the most popular country in Asia among migrating millionaires, placing the city-state tied for seventh on the list. Australia beat its closest rival, the United States, for the fourth year running.

The report suggested that it could be due to three factors: safety, lack of inheritance taxes, and problems relating to healthcare in the U.S. Countries with the most outflows of HNWIs included China (15,000), Russia (7,000) and India (5,000).

Best Performing Wealth Markets

According to the report, global wealth has increased by some 26 percent in the past 10 years, from $161 trillion in 2008 to $204 trillion in 2018, in particular, due to wealth accumulation in Asia.

Seven of the top 10 best-performing wealth markets worldwide from 2008 to 2018 are located in Asia, with China leading the way with 130 percent wealth growth during this period. The rest of the top 10 includes Mauritius, Ethiopia, India, Sri Lanka, Indonesia, Vietnam, Kenya, Philippines, and Korea.

Next Decade

Additionally, the report predicted that global wealth will rise 43 percent over the next decade, reaching $291 trillion, driven by strong growth in Asia.

The fastest growing wealth markets in the next decade are expected to be Vietnam (200 percent wealth growth), India (180 percent), Sri Lanka (150 percent), Mauritius (130 percent) and China (120 percent).

Top Countries by HNWI Inflows