China, renowned for its booming economy and massive population, is set to experience the highest outflow of millionaires globally this year, as revealed by a recent study. Investment migration consultancy Henley & Partners reported that China is projected to lose the most number of dollar millionaires due to migration compared to any other country.

The data from the firm indicated that 10,800 high-net-worth individuals left China in 2022, and an additional 13,500 are expected to depart this year. This ongoing trend of millionaire exodus from China has persisted for the past decade, causing a deceleration in overall wealth growth in the country. Andrew Amoils, Head of Research at global wealth intelligence firm New World Wealth, emphasized the impact of these outflows, stating, “The recent outflows could be more damaging than usual. China’s economy grew strongly from 2000 to 2017, but wealth and millionaire growth in the country has been negligible since then when measured in U.S.-dollar terms.”

Following China, Henley & Partners predicts that India will witness a net loss of 6,500 millionaires this year, a decrease of 1,000 compared to 2022. Factors such as burdensome tax legislation and complex rules regarding outbound remittances have contributed to the increasing trend of investment migration from India, as stated by Sunita Singh-Dalal, Partner of Private Wealth and Family Offices at law firm Hourani.

Despite these outflows, Amoils highlighted that India generates a substantial number of new millionaires, surpassing the count of those lost to migration. Other Asian nations are also expected to witness millionaire departures. Hong Kong is projected to lose a net of 1,000 millionaires this year, while South Korea and Japan could see losses of 800 and 300 millionaires, respectively. Hong Kong experienced a significant exodus of residents in the previous year due to COVID-19 restrictions and perceived erosion of democratic norms.

In contrast, Russia is expected to lose a net of 3,000 millionaires this year, a sharp decline from the 8,500 lost in 2022, despite political unrest and economic uncertainty stemming from the conflict with Ukraine. The United Kingdom ranks fourth in Henley & Partners’ ranking, with an anticipated net loss of 3,200 millionaires, double the number from the previous year. Brexit has been cited as a contributing factor, as it has made the UK less attractive to high-net-worth individuals due to increased difficulties in mobility between the UK and EU countries.

On the welcoming side, Australia is projected to surpass the United Arab Emirates as the top destination for millionaires, with a net influx of 5,200 millionaires expected. The UAE follows closely with 4,500, while Singapore ranks third, anticipating a net gain of 3,200 millionaires settling in the city-state.

Western nations continue to be favored destinations for millionaires, as per the research, with the United States (2,100), Switzerland (1,800), and Canada (1,600) securing spots in the top 10.

Henley & Partners CEO Juerg Steffen highlighted the consistent growth in millionaire migration over the past decade, with global figures expected to reach 122,000 in 2023 and 128,000 in 2024.

By Impact Lab