Guests are seen at the J Hotel situated in the Shanghai Tower in Shanghai on June 23, 2021.
Hector Retamal | afp | Getty Images
China, with the world’s second-largest economy and second-largest population, will once more witness the largest exodus of millionaires this year, in accordance with latest research.
In accordance with a report by an investment migration consulting company Henley and AssociatesChina is anticipated to lose the largest number of dollar millionaires this year as a consequence of migration in comparison with every other country.
The corporate’s figures showed that 10,800 net affluent people emigrated from China in 2022, with one other net 13,500 expected to depart this year.
This just isn’t an issue that began with the coronavirus pandemic and has been happening for 10 years. Over the past decade, China has witnessed the largest outflow of millionaires each year, leading to a slowdown in the country’s overall wealth growth, said Andrew Amoils, head of research at global wealth intelligence firm Latest World Wealth, which helped produce the report. statement.
“Recent outflows could also be more damaging than usual. China’s economy grew strongly from 2000 to 2017, but the growth of wealth and millionaires in the country has been negligible since then (measured in US dollars).
Other big losers
Henley & Partners forecasts that India will lose 6,500 net millionaires this year, down 1,000 net in comparison with the millionaires who left the country in 2022.
“Prohibitive tax laws coupled with convoluted, complex outbound remittance rules that are susceptible to misinterpretation and abuse are only a couple of of the issues that have fueled the trend of investment migration from India,” said Sunita Singh-Dalal, a partner at a non-public property firm. and family offices at the Hourani law firm, in the same report.
Nonetheless, Amoils stressed that these outflows shouldn’t be a cause for concern as “India is producing way more latest millionaires than it’s losing as a consequence of migration.”
Other Asian nations are also expected to see minaires leave their countries.
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Hong Kong is anticipated to lose 1,000 net millionaires this year, while South Korea and Japan could lose 800 and 300 respectively. Reports suggest Hong Kong residents left the city en masse last year – as a consequence of Covid-19 restrictions and what they see as an erosion of democratic norms.
Despite political unrest and economic uncertainty surrounding Moscow’s war with Ukraine, Russia is anticipated to lose only 3,000 net millionaires this year, a pointy drop from 8,500 in 2022.
Russia is ranked fourth by Henley & Partners, after the UK, which could lose 3,200 millionaires net this year, double what it lost the year before.
“Brexit has made the UK less hospitable and fewer hospitable to the wealthy. Now it’s harder for them to maneuver between the UK and EU countries,” Trevor Williams, visiting professor at the University of Derby and former chief economist at Lloyds Bank Business, said in the report.
“Evidence shows that the UK’s share of foreign investment in Europe has declined since leaving the EU, benefiting Germany and France.”
Eyes on these countries
Australia could surpass the United Arab Emirates in hosting the largest number of net millionaires this year. Australia is anticipated to see an influx of 5,200 net millionaires, while the United Arab Emirates comes second with 4,500. Singapore ranks third and will see 3,200 net millionaires establishing homes in the city-state.
In accordance with the survey, the Western countries as an entire remain a gorgeous destination for millionaires, with the United States (2,100), Switzerland (1,800) and Canada (1,600) making the top ten.
“There was a gradual increase in millionaire migration over the past decade, with global numbers in 2023 and 2024 expected to be 122,000 and 128,000 respectively,” said Juerg Steffen, CEO of Henley & Partners.