There’s been a big shift among global billionaires – and where they spend their money
Global consultancy PwC has published its billionaires insights report for 2017, showing that the world’s super wealthy have effectively reversed pressures seen in 2016, with a dramatic return to growth in the past year.
According to PwC, despite global geopolitical uncertainty over the past year, billionaire wealth rose by 17%. For the first time in history, there are now more billionaires in Asia than in US – and 145 new billionaires entered the ranks of the super-wealthy.
The report is based on an analysis of data covering almost 1,550 billionaires across the globe, dating back 20 years. It covers the 14 largest billionaire markets, which account for 80% of global billionaire wealth.
After a pause in 2015, expansion in billionaire wealth has continued, PwC noted in the report. Globally, the total wealth of billionaires rose by 17% in 2016, up from USD5.1 trillion to USD6.0 trillion. There was also a 10% rise in the number of billionaires globally to 1,542.
Asian billionaires rose by almost a quarter to 637. By comparison, the US is home to 563 billionaires and Europe to 342. However, the US still retains the greatest amount of billionaire wealth as the wealthiest individuals live there.
“Our analysis shows that, if current growth trends continue, the total wealth of Asia’s billionaires will overtake the US in four years,” PwC said. However, US billionaire wealth grew by 15% from USD2.4 trillion to USD2.8 trillion as billionaires in the country prospered.
Globally, billionaires are getting older – with an exception to Asian billionaires, who are quite young – which means that their wealth is likely to be increasingly distributed among children and heirs over the coming years.
By sector, those whose wealth stems from the tech sector tend to be younger than the average billionaire, PwC said.
“Over the coming 20 years, we estimate that those who are 70 years old or more will transfer USD2.4 trillion, up by 16% on the previous year. This is not only a huge windfall for their heirs but also for charities,” the group said.
One of the more surprising new findings in the report was where billionaires are spending their money – with PwC noting a sharp uptick in the number of super wealthy individuals putting money into art and sport.
The group found that more billionaires were found among the world’s biggest art collectors (72 in 2016), and were also ramping up ownership of private museums. At the same time, billionaires are also becoming major patrons of sports.
More than 140 of the top global sports clubs – from baseball to cricket – were owned by 109 billionaires. This is a pattern across the world, PwC said.
While for some owning sports clubs was about prestige or business, for others, it was about a passion for the sport, it said.
According to PwC, the outlook for billionaires is good, with wealth growth on an upward trajectory. While the global economy is volatile and fast-changing – particularly in the political sphere – the group said billionaires have proven to be quite resilient.
“For the remainder of 2017 and 2018, we expect favorable conditions. The global economic environment should be benign,7allowing corporations to enjoy rising revenue and profits,” it said.
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