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WEALTH

Le Million Dollar Club: France has second highest number of new millionaires in the world

Almost 260,000 French citizens have joined the Million Dollar Club in 2018, second only to the US in terms of millionaire growth, a new study has found.

Le Million Dollar Club: France has second highest number of new millionaires in the world
Photo: Deposit Photos

More people have become millionaires (in terms of US dollars) in France in 2018 than anywhere else in Europe, a growth in the number of wealthy citizens that’s second only to the United States globally. 

That’s according to Crédit Suisse's annual Global Wealth Report, which measures the wealth index of countries and its citizens across the planet.

In euros, a million dollar equates to €871,315 dollars according to October 23 2018 exchange rates.

Approximately 259,000 French people, roughly the population of the southern city of Bordeaux, joined the so-called Million Dollar Club, taking the total number in France up to 2.14 million US dollar millionaires.

As of January 1st 2018, France’s national stats body INSEE estimated that l’Héxagone’s population stood at 67.2 million, meaning that ‘Le Million Dollar Club’ represents 3.18 percent of people in metropolitan France.

With regard to the other nations at the top of Crédit Suisse's index, the US (in first place) saw a huge spike in the number of wealthy citizens – 878,000 new millionaires.

Germany took third place on the podium with 253,000 new millionaires, then the United Kingdom with 240,000), Italy with 200,000 and in sixth place China 186,000 new millionaires in 2018.

These margins are of course subject to currency fluctuations, meaning that a stronger euro against the US dollar will result in more French people being classified as millionaires.

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This however hasn’t been the case in 2018.

“The main explanation for these increases in the number of millionaires in European countries is down to the growth of actual wealth, rather than in exchange rate fluctuations,” the authors of the Credit Suisse study conclude.

In global standards, Credit Suisse estimates that the number of millionaires now stands at 42 million people, an increase of 2.3 million compared to last year’s figures.

With the current world population estimated to be around 7.6 billion, that means that the number of global (US dollar) millionaires now represents around 0.55 percent, a smaller figure even than the so-called ‘one percent’, a term popularised by a 2006 documentary focusing on the growing wealth gap between the wealthy elite compared to the overall citizenry in the US.


 

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WEALTH

Germany takes third spot in global ranking of ‘ultra-rich’ people

Germany has snagged third place in a ranking showing the ultra rich of the world, while the number of millionaires has also gone up despite the pandemic.

Germany takes third spot in global ranking of ‘ultra-rich’ people
The number of rich is growing despite the pandemic. Photo: picture alliance / dpa | Jens Kalaene

The year 2020 caused financial stress for many people across the world. But some people – including in Germany – actually got richer. 

Overall across the world, the number of individuals with a financial wealth of over 100 million US dollars (€82.25 million) grew by 6,000 during the coronavirus pandemic year 2020, according to the Global Wealth 2021 report by the Boston Consulting Group (BCG).

Currently a record 60,000 people belong to the ultra-rich club. These individuals own 15 percent of the world’s investable assets, according to the report.

Germany came in at third place on global rankings, with around 2,900 of these “ultra-high net worth individuals,”.  The US is at the top with about 20,600 people with a wealth of over 100 million dollars, followed by China with 7,800.

READ ALSO: Who belongs to the top 10 percent of earners in Germany?

What about private wealth?

People around the globe accumulated more wealth than ever before in the coronavirus crisis year 2020.

Private financial assets rose by eight percent year-on-year to a record 250 trillion US dollars (around €205 trillion), according to the analysis.

Rising stock market prices and growing savings contributed to this. For the first time, BCG also took into account tangible assets such as real estate or gold. Total wealth thus amounted to 431 trillion dollars.

In Germany, private financial assets, including cash, account balances, shares, pensions and life insurance policies, rose by around six percent to approximately nine trillion dollars, according to the data. Tangible assets increased by five percent to 13 trillion dollars.

“Germans traditionally invest in real estate,” said BCG partner and report author Anna Zakrewski.  This is clearly shown by the real asset ratio of just under 60 percent, she said.

“At the same time, investors in Germany are saving at an above-average rate.”

Many people have been holding on to their money during the crisis, Zakrewski said, adding that temporary closures in the retail sector and travel restrictions were also putting the brakes on spending.

READ ALSO: How and why Germany’s super-rich list is growing

The number of dollar millionaires in Germany increased by 35,000 to 542,000 in 2020, according to the report. 

The consulting firm said the increase could partly be attributed to the development of the euro exchange rate, which rose against the dollar. This had a noticeable effect on the conversion to the US currency.

Across the globe, 26.6 million people own financial assets of one million dollars or more – up by 1.8 million from the previous pre-Covid year.

The US led the global wealth ranking overall with 136 trillion dollars, followed by Asia excluding Japan (111.9 trillion) and Western Europe (103 trillion). In view of the expected economic recovery after the crisis, BCG believes global private wealth will grow steadily in the coming years.

READ ALSO: This is how many millionaires live in Germany

Who are the richest people in Germany?

As heirs to Aldi Süd, they became billionaires: Beate Heister and Karl Albrecht Junior are currently the richest people in Germany, with assets of 39.2 billion US dollars, according to Forbes.

In second place of the richest Germans is Dieter Schwarz, owner of the Schwarz Group, which Lidl and Kaufland belong ($36.9 billion) to. Theo Albrecht, the co-owner of Aldi Nord, is also in the top seven, with assets of $18.8 billion.

Internationally, however, another (super) market founder is leading: with 177 billion US dollars, Amazon founder Jeff Bezos is currently considered the wealthiest person in the world.

Graph translated by Statista for The Local Germany
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