Bangladesh will see the third quickest growth in the number of high net-worth individuals in the world in the next five years, according to a new report of New York-based research firm Wealth-X.
The country's high net worth (HNW) population with a net worth of $1 million to $30 million will expand by a compound annual rate of 11.4 percent between now and 2023, showed the firm's inaugural High Net Worth Handbook 2019.
The report, published on Wednesday, says Nigeria is set to see its HNW population balloon by a compound annual rate of 16.3 percent, followed by Egypt at 12.5 percent.
In the ranking of the 10 fastest-growing HNW population countries, Bangladesh is ahead of Vietnam, Poland, China, Kenya, India, the Philippines and Ukraine.
The study drew on research from more than 540,000 HNW individuals to forecast its outlook for global wealth growth over the next five years.
Last year, the world's HNW population rose by 1.9 percent to 22.4 million, an increment below the rate of global economic growth. Their combined wealth also grew by 1.8 percent to $61.3 trillion.
Backed by strong GDP growth and relatively more stable equity markets compared with other regions, Europe, the Middle East and North America saw positive growth in their HNW populations in 2018.
Asia, which saw its billionaires and UHNW populations grow faster than any other region in 2017, saw less than 1 percent growth in its HNW population and its wealth last year. While Asia's GDP grew by more than 8 percent last year, its stock markets plunged by more than 11 percent during the same year.
In 2018, the US remained by far the dominant HNW nation with 8.67 million individuals. China has the second-largest HNW population, at just under 1.9 million individuals.
Japan, with just over 1.6 million HNW individuals, comes in third place. European economic powerhouse Germany has the fourth highest HNW population, followed by the UK and France.
Canada, South Korea, Australia and Italy came in the seventh, eighth, ninth and 10th places respectively.
The top 10 countries accounted for 75.2 percent of the global HNW population and 73.8 percent of the total HNW wealth last year. In absolute terms, the top 10 countries added more than 387,000 HNW individuals compared with 2017, with combined net worth in the countries rising by an annual $1 trillion.
With the world's population passing the 8-billion threshold by 2023, the report expects the number of HNW individuals to exceed 30.1 million, an increase of more than 7.7 million compared with 2018. The amount of HNW wealth is projected to rise to $82.2 trillion, meaning wealth of an additional $20.9 trillion would be created over the next five years.
The top 10 HNW cities are New York, San Francisco, Hong Kong, Los Angeles, Dallas, Chicago, Tokyo, Washington DC, London and Paris.
The majority of the HNW individuals have finance, banking and investment as their primary industry. Manufacturing and technology came second and third in terms of the top HNW industries.
Business services as an industry is in the top five industries. The fifth industry for the HNW population is construction and engineering.
The proportion of wealthy individuals whose fortunes are predominantly self-made continues to increase, and this is largely due to environments of free enterprise that foster accelerated wealth creation and the dynamism from technology-related industries.
In 2018, 83.8 percent of wealthy individuals were self-made and the proportion of inherited wealth dropped to 4.5 percent.
The proportion of women HNW individuals continued to rise gradually over recent years and increased further in 2018 to a record high of just below 16 percent.
Outside of wealth creation, and with some fitting symmetry, philanthropic activities are one of the main activities of the global ultra wealthy population; and to a lesser extent, HNW individuals. After a dip following the global financial crisis a decade ago, global philanthropic giving has recovered and reached record heights.