In recent years, global private wealth has been rapidly growing, exceeding worldwide economic growth in the process. Many of the world’s wealthiest people have protected their assets by taking advantage of tax benefits through offshore investments.
Data presented by AksjeBloggen.com indicated that Switzerland is considered the prime destination for private offshore wealth. The total value of wealth kept in Switzerland reached a staggering $2.4 trillion last year (equivalent to one-quarter of the global sum).
Cross-Border Wealth Destinations by Country
Among the many countries heading to Switzerland for private offshore wealth are Hong Kong and Singapore. Experts expect that these major players will experience the most considerable growth in private offshore wealth by 2025.
According to a Boston Consulting Group survey, Hong Kong ranks second as one of the leading private offshore wealth destinations with a private cross-border wealth of $2.1 trillion in 2020.
Singapore comes in third place with offshore investments of $1.2 trillion— a significantly lower figure than the two top countries. However, the US, the Channel Islands, and the UAE follow Singapore with $0.9 trillion and $0.5 trillion in offshore investments. The UK ranked as the eighth most popular offshore wealth destination globally, with $0.3 trillion in cross-border assets.
Significant Growth for Hong Kong and Singapore
Wealth created by mainland China was a determining factor for the massive increases in growth for Hong Kong and Singapore. The private offshore wealth in Hong Kong and Singapore may expect growth by a CAGR of 9% by 2025.
Even with the protest movement in Hong Kong and China’s increasing influence and presence there, offshore wealth development was not significantly affected. However, these types of situations may cause investors to direct future investments in Singapore instead.
The Ultra-Rich Across the World
According to Knight Frank’s 2021 wealth report, North America leads the way for the number of ultra-high-net-worth individuals (or UHNWIs), with over 190,000 last year alone. These individuals had net assets (including their primary residence) amounting to well over $30 million. In Europe and Asia, there were 151,600 and 116,700 ultra-high net worth individuals.
The Hurun Research Institute data indicates that Beijing had the highest number of billionaires for 2021, totaling 145. Shanghai, New York, Shenzhen, and London are close behind Beijing, with billionaires totaling 113, 112, 105, and 82.
How Wealthy Are the Ultra-Rich?
Statistical predictions indicate that the wealth of the ultra-rich in Germany may experience the most significant growth by 2025. The amount coming from this group may double to $0.8 trillion by the year 2025. India comes in second, with the ultra-rich contributing to an 83% increase in wealth to $1.1 trillion during this period.
The wealth of mainland China’s ultra-rich is forecasted to reach $6.5 trillion by 2025. This figure represents an 80% increase over 2020. The US surpasses these figures, where experts anticipate that, by 2025, the ultra-rich individuals will hold approximately $7.8 trillion in total.