According to a new report by the Swiss bank UBS, cited by The Guardian, the planet’s new billionaires have become richer through the death of their relatives than through their own entrepreneurial spirit and work.
UBS analysts found that of the 137 people who became dollar billionaires between April 2022 and April 2023, 53 inherited a fortune worth $150.8 billion from their family.
Although the number of self-made billionaires is higher, the 84 self-made billionaires only managed to increase their wealth by $140.7 billion during the same time period.
UBS said it was the first time in the nine years since it began compiling its annual report on the fortunes of the world’s richest 0.00004 percent that “the next generation of billionaires amassed more wealth through inheritance than through entrepreneurial activity.”
“This is a theme we expect to see more of over the next 20 years, as more than 1,000 billionaires leave their children about $5.2 trillion in wealth,” said Benjamin Cavalli, chief client strategist at the Swiss bank, which took on rivals in March this year. Credit Suisse after the most high-profile banking collapse in Europe in recent years.
Heirs of European billionaires have recently become the richest
The UBS report also notes that “the growing importance of these families [de miliardari multigeneraționali] can be seen in all major geographic regions.”
For example, in the Asia-Pacific region, inherited wealth was $2 billion compared to $1.6 billion in created wealth; In America, heirs became richer by $2.2 billion compared to $1.5 billion for entrepreneurs; in Europe, the ratio was even more disproportionate in the time period analyzed, with $4.4 billion inherited compared to $2.2 billion created.
In general, from April 2022 to April 2023, the number of billionaires on the planet increased by 7% and reached 2,544 people. According to the UBS report, their total wealth increased by 9% to $12 trillion. The Guardian notes that this amount is about 4 times greater than the annual GDP of Great Britain.
The UBS report also points out that the large sums of money already passed on to the next generation are “only the tip of the iceberg”.
“This major wealth transfer has been long overdue, but the 2023 report shows that it is ongoing and accelerating,” UBS notes.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.