Millionaires Will Account For Half The World’s Wealth By 2020

Metal Briefcase Full of Money

Taylor Beck Contributor
Font Size:

By the end of this decade, Boston Consulting Group projects that millionaires will account for half of the world’s private wealth, according to CNN Money.

When referring to private wealth, the report is referencing assets that are easily liquidated, such as cash, stocks and bonds. Other assets such as real estate were not included in the calculations.

Last year alone, millionaires held 41 percent of private sector capital. With the market continuing to grow, it is believed that by 2019 these tycoons will see a five percent increase in their holdings.

According to 2014 records, there were 17 million millionaires, which was up from 15 million in the previous year. By the end of the decade these trends indicate that this number will only continue to rapidly increase.

A key contributor to the millionaire club is the world’s largest economy, China. Within the last decade, China has experienced unparalleled growth, leading to one million millionaires within its borders alone. These economic conditions breed the perfect environment for the rich to get richer.

Thinking back on the perils of the 2008 financial crisis, this continued growth is a welcomed trend. However, as the upper echelons of society continue to control most of the wealth, the International Monetary Fund argues that this could hinder individual countries’ future growth. (RELATED: Does The Free Market Cause Wealth Inequality?)