World Wealth Report 2023: There has been a significant decline in the number of High Net Worth Individuals (HNWIs) across the world. The decline in the number and wealth of HNWIs this year is the highest in last 10 years, as revealed in Capgemini's "World Wealth Report 2023". On the other hand, the affluent segment now presents a new frontier as this population continues to grow in size and financial clout. Amid the gloom of reducing numbers and wealth of HNWIs, the report has some positive news for India as it has appreciated the country's stock market performance.

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What does the World Wealth Report 2023 say?

Published on June 1, 2023, the report says that in the last one year, the wealth of HNWIs has decreased due to the geopolitical crisis, a huge decline in the market, an increased cost of living, and unexpected inflation.

Central banks around the world have increased interest rates, which has affected the global economy.

The earnings of companies have been affected, and there has been a lot of pressure on technology stocks.

How much has the decline in HNWIs' wealth been?

According to the report, global HNWIs' wealth declined 3.6 per cent to $83 trillion in 2022, which is the biggest decline between 2013 and 2022.

Be it diversified instruments or equity, the wealth of HNWIs has declined. Not only wealth but also the number of HNWIs has also declined by 3.3% to 21.7 million in 2022.

According to the data, the biggest decline was seen in North America.

In terms of affluent people, North America (46 per cent) and Asia-Pacific (32 per cent) hold the largest share of global affluents in terms of wealth value and population size.

Despite holding nearly $27 trillion in assets (almost 32 per cent of total HNWI wealth), 34 per cent of firms are not exploring this segment, the report says.

What is the positive news for India?

The report said that 2022 was still a good year for India and Indonesia in the Asia Pacific.

The average boom in the Indian market in the last one year has been good.

The BSE Sensex registered a year-on-year gain of 4.4 per cent, while the Nifty50 gained 4.3 per cent. 

Indian HNWIs performed well last year

The wealth of HNWIs may have been affected this year, but in the last year's Capgemini report, which was based on 2021 data, it was found that the HNWI population in India had registered a 10.5 per cent growth, and a total of 308 Indians had come into the category of ultra-rich.

Even at the global level, the growth in the number of HNWIs was 7.8 per cent to 22.5 million.

There was also a rise of 8 per cent in their wealth.