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Number of global millionaires hits 18.1 million

High-net-worth individuals are those whose assets are worth at least $1m excluding their primary residence - Alamy
High-net-worth individuals are those whose assets are worth at least $1m excluding their primary residence - Alamy

The number of high-net-worth individuals globally has climbed to 18.1 million, up from 16.5 million in 2016.

The combined wealth of the HNWI – those whose assets are worth at least $1m (£750,000) excluding their primary residence – has also hit an all-time high of $70.2 trillion, thanks to accelerating economic and equity-market performance across Asia and North America.

For the sixth year in a row, the fortunes of the world's richest people have risen, with total wealth 10.6pc higher last year than in 2016, led by growth in the United States, Japan, Germany and China, which together represent 61.2pc of the global high-net-worth individual population.

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While Europe's HNWI population has risen, by 7.3pc, Britain has lagged behind because of its "stagnant economic performance, combined with slowing equity-market growth and falls in the value of real estate", said Capgemini's 2018 World Wealth Report.

Ireland, on the other hand, saw its HNWI population rise by 15.3pc thanks to a buoyant property market and continued appeal as a base for multinational companies and their affluent employees. Dublin's Silicon Docks is home to the headquarters of tech giants including Google, Facebook, Twitter and LinkedIn. 

The world's share of millionaires in 2017
The world's share of millionaires in 2017

The report said that the largest regions for HNWI population and wealth – Asia-Pacific and North America – had benefited from strong equity performance, aided by robust recovery in corporate earnings, lack of volatility, and positive macroeconomic reforms.

Even notable 2016 equity-market laggards such as China, Switzerland, and Italy experienced strong market performance last year, which further enabled global HNWI wealth growth, Capgemini said, adding that it expects global HNWI wealth to succeed $100 trillion by 2025.

The report also found that the number of rich people who tipped over the threshold to become ultra high-net-worth individuals – the uber-rich, with investable assets of more than $30m – rose by 11.2pc last year. As a result, there are now 174,800 people globally in the ultra-HNWI bracket.

Ranked | The countries with the highest population of high-net-worth individuals
Ranked | The countries with the highest population of high-net-worth individuals

A report by Credit Suisse last year found that global wealth had risen by 6.4pc over the year, the fastest rate since 2012, with total household wealth peaking at $280 trillion.

While the US – which accounts for 36pc of total global wealth – has experienced a remarkable recovery following the 2008 financial crisis, figures for Britain were not so positive, with more modest wealth gains of 2pc over 2017. This is far behind the likes of Poland (18pc), which has benefited from equity price rises, and Israel (16pc) and South Africa (15pc), which have both gained due to exchange-rate appreciation.

While Britain's wealth boomed in the early years of this century, thanks to a robust housing market and good equity returns, it crashed during the 2008 financial crisis and wealth has climbed at a more steady pace since. 

Credit Suisse said it expected global wealth to reach $341 trillion by 2022. "The number of millionaires will grow to a new all-time high of 44 million, while the number of UHNWIs [ultra high-net-worth individuals] is projected to reach 193,000," it said.