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Mapping the Global Migration of Millionaires

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millionaire migration map

The world’s wealthiest people are also the most mobile.

High net worth individuals (HNWIs) – persons with wealth over US$1 million – may decide to pick up and move for a number of reasons. In some cases they are attracted by jurisdictions with more favorable tax laws, or less pollution and crime. Sometimes, they’re simply looking for a change of scenery.

Today’s graphic, using data from the annual Global Wealth Migration Review, maps the migration of the world’s millionaires, and clearly shows which countries are magnets for the world’s rich, and which countries are seeing a wealth exodus.

The Flight of the Millionaires

It’s no secret that China has been a wealth creation machine over the past two decades. Although the country is still making a number of its citizens very wealthy, over 15,000 Chinese HNWIs still chose to migrate to other countries in 2018 – the most significant migration of any country.

Here’s a look at the top countries by HNWI outflows:

CountryNet Outflow of NHWIs (2018)% of HNWIs lost
🇨🇳 China15,0002%
🇷🇺 Russia7,0006%
🇮🇳 India5,0002%
🇹🇷 Turkey4,00010%
🇫🇷 France3,0001%
🇬🇧 United Kingdom3,0000%
🇧🇷 Brazil2,0001%
🇸🇦 Saudi Arabia1,0002%
🇮🇩 Indonesia1,0002%

Figures rounded to nearest 1000.

Unlike the middle class, wealthy citizens have the means to pick up and leave when things start to sideways in their home country. An uptick in HNWI migration from a country can often be a signal of negative economic or societal factors influencing a country.

This is the case in Turkey, which has been rocked by instability, mass protests, and an inflation rate estimated to be in the triple-digits by some sources.

For the third straight year, Turkey lost more than 4,000 millionaires. An estimated 10% of Turkey’s HNWIs fled in 2018, which is concerning because unlike China and India, the country is not producing new millionaires in any significant number.

Millionaire Magnets

Time-honored locations – such as Switzerland and the Cayman Islands – continue to attract the world’s wealthy, but no country is experiencing HNWI inflows quite like Australia.

The Land Down Under has a number of attributes that make it an attractive destination for migrating millionaires. The country has a robust economy, and is perceived as being a safe place to raise a family. Even better, Australia has no inheritance tax and a lower cost of health care, which can make it an attractive alternative to the U.S.

In 2018, Australia jumped ahead of both Canada and France to become the seventh largest wealth market in the world.

Here’s a look at HNWI inflows around the world:

CountryNet Inflow of HNWIs (2018)% of HNWI Gained
🇦🇺 Australia12,0003%
🇺🇸 United States10,0000%
🇨🇦 Canada4,0001%
🇨🇭 Switzerland3,0001%
🇦🇪 United Arab Emerates2,0002%
🇧🇲 Caribbean*2,0003%
🇳🇿 New Zealand1,0001%
🇸🇬 Singapore1,0000%
🇮🇱 Israel1,0001%
🇵🇹 Portugal1,0002%
🇬🇷 Greece1,0002%
🇪🇸 Spain1,0001%

Figures rounded to nearest 1000. *Bermuda, Cayman Islands, Virgin Islands, St Barts, Antigua, St Kitts & Nevis, etc

Greece, which was one of the worst performing wealth markets of the last decade, is finally seeing a modest inflow of millionaires again.

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Money

The Racial Wealth Gap in America: Asset Types Held by Race

White families are more likely to hold assets of any type compared to other races. This chart highlights the substantial racial wealth gap.

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The Racial Wealth Gap

People of color have faced economic inequality for generations, and the recent wave of Black Lives Matter protests has renewed discussions on these disparities.

Compared to White families, other races have lower levels of income and net worth. They are also less likely to hold assets of any type. In fact, 19% of Black families have zero or negative net worth, while only 9% of White households have no wealth.

Today’s chart uses data from the U.S. Federal Reserve’s triennial Survey of Consumer Finances to highlight the racial wealth gap, and the proportion of households that own different kinds of assets by racial group.

Asset Types Held By Race

The financial profile between racial groups varies widely. Below is the percentage of U.S. families with each type of asset, according to the most recent survey from 2016.

 WhiteBlackHispanicOther
Primary Residence73%45%46%54%
Vehicle90%73%80%80%
Retirement Accounts60%34%30%48%
Family-owned Business Equity15%7%6%13%
Publicly-traded Stocks61%31%28%47%

Vehicles are the most common asset across all racial groups, followed by a primary residence.

However, the level of equity—or home value less debts—families have in their houses differs by race. White families have equity of $215,800, whereas Black and Hispanic households have net housing wealth of $94,400 and $129,800 respectively.

In addition, White households are more likely to hold financial assets such as retirement accounts, family businesses, and stocks. These assets are instrumental in building wealth, and are prominent in the wealth composition of America’s richest families.

With fewer people of color holding these assets, they miss out on higher average returns than low-risk assets, as well as the power of compound interest. These portfolio differences are striking, but they are not the most important contributing factor in the racial wealth gap.

Demographic and Economic Variations

White households are also more likely to have demographic characteristics that are associated with wealth. According to the U.S. Federal Reserve, they are:

  • Older, with more than half of households age 55 and up
  • More highly educated, with 51% having some type of degree
  • Less likely to have a single parent
  • More likely to have received an inheritance

For example, 39% of White heads of households have a bachelor’s degree or higher, compared to 23% and 17% for Black and Hispanic household heads, respectively. However, education doesn’t fully explain the wealth inequities.

Racial Wealth Gap by Education

Enormous wealth disparities exist between families with the same education level. Even in cases where Black and Hispanic household heads have obtained a bachelor’s degree, their families’ median wealth of $68,000 and $78,000 respectively is still lower than the $98,000 median wealth for White families where the head has no bachelor’s degree.

After accounting for demographic factors, researchers still found there were considerable inequities. What, then, could be primarily responsible for the racial wealth gap?

The Income Gap

While previous research found that the wealth gap is “too big” to be explained by a difference in income, a recent study from the Federal Reserve Bank of Cleveland offers a new perspective. Focusing on White and Black U.S. households only, researchers analyzed the dynamics of wealth accumulation over time, as opposed to previous studies that considered short time periods.

They found that income inequality was the primary contributor to the racial wealth gap. According to the model, if Black and White households had earned the same labor income from 1962 onwards, the Black-to-White wealth ratio would have reached 0.9 by 2007.

Moving forward, the study concludes that policy changes will likely have a positive impact if they address issues contributing to income gaps. This includes reducing racial discrimination in the labor market, and creating programs, such as mentorships, that improve environments for specific racial subgroups.

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Chart of the Week

Hunger Pandemic: The COVID-19 Effect on Global Food Insecurity

Over 135 million people face acute food insecurity worldwide—but COVID-19 could almost double these numbers. Which regions could be most affected?

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global food crisis 2020

How COVID-19 Could Worsen Global Food Insecurity

While COVID-19 is dominating headlines, another kind of emergency is threatening the lives of millions of people around the world—food insecurity.

The two are very much intertwined, however. By the end of 2020, authorities estimate that upwards of 265 million people could be on the brink of starvation globally, almost double the current rate of crisis-level food insecurity.

Today’s visualizations use data from the fourth annual Global Report on Food Crises (GRFC 2020) to demonstrate the growing scale of the current situation, as well as its intense concentration in just 55 countries around the globe.

Global Overview

The report looks at the prevalence of acute food insecurity, which has severe impacts on lives, livelihoods, or both. How does the Integrated Food Security Phase Classification (IPC) classify the different phases of acute food insecurity?

  • Phase 1: Minimal/None
  • Phase 2: Stressed
  • Phase 3: Crisis
  • Phase 4: Emergency
  • Phase 5: Catastrophe/Famine

According to the IPC, urgent action must be taken to mitigate these effects from Phase 3 onwards. Already, 135 million people experience critical food insecurity (Phase 3 or higher). Here’s how that breaks down by country:

Country/ TerritoryTotal Population Analyzed (Millions)Population in Crisis (Phase 3+, Millions)Share of Analyzed Population in Crisis
Afghanistan¹30.711.337%
Angola¹
(24 communes in 3 provinces)
0.90.662%
Bangladesh
(Cox's Bazar and host populations)
3.51.337%
Burkina Faso¹21.41.26%
Burundi11.50.22%
Cabo Verde0.50.012%
Cameroon¹
(7 regions)
16.11.48%
Central African Republic¹
(excluding Lobaye)
4.41.841%
Chad¹14.30.64%
Colombia¹
(Venezuelan migrants)
1.60.955%
Côte d'Ivoire19.80.060%
Democratic Republic of the Congo¹
(109 territories)
59.915.626%
Ecuador¹
(Venezuelan migrants)
0.40.376%
El Salvador¹
(Eastern region)
1.40.322%
Eswatini¹
(rural population)
0.90.225%
Ethiopia¹
(selected areas in 6 regions)
28.7827%
Gambia20.210%
Guatemala¹16.63.118%
Guinea10.10.33%
Guinea-Bissau¹1.30.110%
Haiti¹10.53.735%
Honduras¹
(13 departments)
5.1118%
Iraq39.31.85%
Kenya¹
(Arid and Semi-Arid Lands)
13.93.122%
Lebanon¹
(Syrian refugees)
0.90.329%
Lesotho¹
(rural population)
1.50.430%
Liberia4.30.041%
Libya6.70.35%
Madagascar¹
(Southern, south-eastern and eastern areas)
4.61.328%
Malawi¹15.33.322%
Mali¹20.50.63%
Mauritania¹4.10.615%
Mozambique¹
(39 districts)
51.734%
Myanmar540.71%
Namibia2.40.418%
Nicaragua60.081%
Niger¹21.81.47%
Nigeria¹
(16 states and Federal Capital Territory)
103.555%
Pakistan¹
(Balochistan and Sindh drought-affected areas)
63.151%
Palestine51.733%
Rwanda12.60.11%
Senegal¹13.20.43%
Sierra Leone¹8.10.34%
Somalia¹12.32.117%
South Sudan²11.4761%
Sudan¹
(excluding West Darfur)
41.95.914%
Syrian Arab Republic18.36.636%
Turkey¹
(Syrian refugees)
2.70.517%
Uganda401.54%
Ukraine
(Luhansk and Donetsk oblasts, and IDP)
6.10.59%
United Republic of Tanzania¹
(16 districts)
4.8120%
Venezuela¹28.59.332%
Yemen²29.915.953%
Zambia¹
(86 districts)
9.52.324%
Zimbabwe¹
(Rural population)
9.43.638%
Total populations825.1 million134.99 million

Source: GRFC 2020, Table 5 – Peak numbers of acutely food-insecure people in countries with food crises, 2019
¹ Include populations classified in Emergency (IPC/CH Phase 4)
² Include populations classified in Emergency (IPC/CH Phase 4) and in Catastrophe (IPC/CH Phase 5)

While starvation is a pressing global issue even at the best of times, the ongoing impact of the COVID-19 pandemic is projected to almost double these numbers by an additional 130 million people—a total of 265 million by the end of 2020.

To put that into perspective, that’s roughly equal to the population of every city and town in the United States combined.

A Continent in Crisis

Food insecurity impacts populations around the world, but Africa faces bigger hurdles than any other continent. The below map provides a deeper dive:

global food crisis 2020 africa

Over half of populations analyzed by the report – 73 million people – are found in Sub-Saharan Africa. Main drivers of acute food insecurity found all over the continent include:

  • Conflict/Insecurity
    Examples: Interstate conflicts, internal violence, regional/global instability, or political crises.
    In many instances, these result in people being displaced as refugees.
  • Weather extremes
    Examples: Droughts and floods
  • Economic shocks
    Macroeconomic examples: Hyperinflation and currency depreciation
    Microeconomic examples: Rising food prices, reduced purchasing power
  • Pests
    Examples: Desert locusts, armyworms
  • Health shocks
    Examples: Disease outbreaks, which can be worsened by poor quality of water, sanitation, or air
  • Displacement
    A major side-effect of conflict, food insecurity, and weather shocks.

One severely impacted country is the Democratic Republic of Congo, where over 15 million people are experiencing acute food insecurity. DRC’s eastern region is experiencing intense armed conflict, and as of March 2020, the country is also at high risk of Ebola re-emergence.

Meanwhile, in Eastern Africa, a new generation of locusts has descended on croplands, wiping out vital food supplies for millions of people. Weather conditions have pushed this growing swarm of trillions of locusts into countries that aren’t normally accustomed to dealing with the pest. Swarms have the potential to grow exponentially in just a few months, so this could continue to cause big problems in the region in 2020.

Insecurity in Middle East and Asia

In the Middle East, 43 million more people are dealing with similar challenges. Yemen is the most food-insecure country in the world, with 15.9 million (53% of its analyzed population) in crisis. It’s also the only area where food insecurity is at a Catastrophe (IPC/CH Phase 5) level, a result of almost three years of civil war.

global food crisis 2020 middle east

Another troubled spot in the Middle East is Afghanistan, where 11.3 million people find themselves in a critical state of acute food insecurity. Over 138,000 refugees returned to the country from Iran and Pakistan between January-March 2020, putting a strain on food resources.

Over half (51%) of the analyzed population of Pakistan also faces acute food insecurity, the highest in all of Asia. These numbers have been worsened by extreme weather conditions such as below-average monsoon rains.

An Incomplete Analysis

As COVID-19 deteriorates economic conditions, it could also result in funding cuts to major humanitarian organizations. Upwards of 300,000 people could die every day if this happens, according to the World Food Program’s executive director.

The GRFC report also warns that these projections are still inadequate, due to major data gaps and ongoing challenges. 16 countries, such as Iran or the Philippines have not been included in the analysis due to insufficient data available.

More work needs to be done to understand the true severity of global food insecurity, but what is clear is that an ongoing pandemic will not do these regions any favors. By the time the dust settles, the food insecurity problem could be compounded significantly.

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