A report by data firm Altrata shows that Asia’s ultra-high-net-worth (UHNW) population saw a dramatic decrease of approximately 10.9% in 2022. This downturn marks the most substantial drop in the world. The report stated that the decline is the most of any region and that the current ultra-wealthy population is down to 108,370. The fall has been attributed to disrupted regional supply chains, China’s strict Covid lockdown policies, and the war in Ukraine. According to the report, bearing the brunt of the consumption from the war and compromised exports are tech-heavy markets such as Taiwan and South Korea.

The report defines UHNW individuals with over $30 million net worth. The combined net worth of this population was at $12.13 trillion before the drop. This figure is compared to Europe’s collective UHNW population, which was cited at $11.73 trillion during the same period and has since plummeted by 7.1%. Europe’s UHNW population has reportedly fallen to just 100,850 individuals as the second-most affected region. The report cites Russia’s invasion of Ukraine as the primary factor and cause of a “direct fallout.” Europe’s reliance on energy supplies weaponized by Moscow led to inflationary shocks that heightened risk aversion and disrupted supply chains.

With a combined net worth of $16.47 trillion, North America—the world’s largest ultra-wealth market—reported a 4% drop to 142,990 individuals. The Altrata report shows that the aggressive rate-hiking cycle perpetrated by the U.S. Federal Reserve drove the fall. The Fed enacted its rate-hiking campaign in March 2022, resulting in the highest inflation levels in 40 years. The report cited the top ten UHNW locations, including China, Hong Kong, and the U.S. Out of the top ten, only India has experienced an increase in UHNW individuals. However, other regions outside the complete ten saw jumps.

Latin America, the Middle East, and the Caribbean saw substantial gains in their UHNW populations. The Caribbean and Latin America experienced a 17.5% spike, while the Middle East saw an increase of 15.7%. The rise of UHNW individuals in these regions has been accredited to a commodity price increase. According to the report, “With the largest wealth markets all major commodity exporters, regional asset portfolios were buoyed by improved terms of trade from higher prices.”

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With a 3% rise in its UHNW population, Altrata highlighted India’s economic progress as among the fastest-growing in 2022. Worldwide, a more than 5.4% fall in the world’s ultra-wealthy population was reported. This marks the first annual decrease in four years. The report stated that a reassessment of capital market risk and returns has resulted from “a generational surge in inflation [which] triggered aggressive monetary policy tightening for the first time in more than a decade.” However, despite the recent volatility, Altrata anticipates the global UHNW population to increase from 395,070 to 528,100 over the next five years. The data and intelligence platform cites recent notable rises in Asia among the reasons for an expected increase. North America is also projected to preserve its place as the world’s foremost super-wealthy region.