The latest report on global wealth points to considerable growth in the number of Brazilian millionaires by 2022. Second only to Argentina, Brazil will see one of the highest increases in the world of those with over a million dollars to their name.
The latest annual Global Wealth Report published by Credit Suisse shows a richer world where wealth levels are increasing every year. One of the regions expected to create most wealth at millionaire level is Latin America with an expected growth of 54% over the next five years.
Latin American millionaires
Between 2016 and 2017, wealth levels in Latin America went up by 7% to reach US$8.107 billion. There are currently 460,000 millionaires in the continent, a figure that Credit Suisse calculates will rise by over half by 2022.
Within Latin America, Argentina and Brazil will see the highest growth in the number of millionaires. Argentina will see its number grow by over double to reach 68,000, an increase of 127%. Brazilian millionaires, who currently number 164,000, will increase to 296,000 over the next five years, a rise of 81%.
To put these figures into perspective, Credit Suisse reports that the number of millionaires at global level will go up by 22% in the world between now and 2022.
Emerging economies adding wealth
One of the consequences of the increase in Argentinian and Brazilian millionaires will be a greater share in global wealth in Latin America. Emerging economies, including China and India, are “expected to generate wealth at a faster pace than their developed peers” says the Credit Suisse report. By 2022, they should represent 22% of all global wealth.
The report finds that the world’s wealth has increased by US$280 trillion since 2007. This translates to a rise of 27%. In the last year alone, global wealth has gone up by 6.4%, the fastest rate since 2012.
Effects of more Brazilian millionaires
The vast increase in the number of Brazilian millionaires, expected to number 296,000 by 2022, will have significant effects on buying trends in the country. Analysts expect a marked rise in demand for high-end goods, including holiday homes and vehicles, over the next five years.
The luxury sector catering for Brazilian millionaires is already growing. According to figures provided by MCF Consultoria, the sector had a turnover of R$33.9 billion in 2016, up 9% on 2015.
A report by Lopes Inmobiliaria based in Fortaleza in Northeast Brazil found that sales of luxury property in the city boomed in August. “The luxury market is sensational and heating up,” said Ricardo Bezerra, director of the company and quoted in the local newspaper, Diario do Nordeste. Analysts expect more of the same over the next five years.
(Source: Credit Suisse)