Narayan AmmachchiLatin America saw a sharp decline in both financial wealth and the population of high-net-worth individuals (HNWIs) in 2024, hit hard by the escalating trade tensions between China and the United States.
According to a report by the Capgemini Research Institute, the region’s financial wealth dropped 2.6% last year, while its HNWI population fell 8.5% to 587,000. A volatile currency environment and weakening global demand for mineral exports further weighed on fortunes.
While North America and Asia saw an increase in their millionaire populations, Europe and Middle Eastern countries experienced a decline. Latin America’s performance was far worse than Europe and the Middle East, with its ultra-high-net-worth individual (UHNWI) population facing a significant downturn.
Considering the report, in Latin America, there are an estimated 13,930 individuals with assets exceeding US$30 million, which is down 7.6% from last year. Additionally, 85,510 individuals have assets between US$5 million and US$30 million, marking an 8.2% decline.
Finally, 487,570 individuals hold assets between $1 million and $5 million, representing an 8.6% decrease.
Brazil, the region’s largest economy, saw a 2.6% drop in HNWI wealth and a steep 13.3% fall in its HNWI population. In Mexico, concerns over potential trade barriers undermined investor sentiment, leading to a 7.5% drop in HNWI wealth and a 13.5% decline in population.
The Capgemini report covers 71 countries, accounting for over 98% of global gross national income and 99% of global stock market capitalization.
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