Brazil should add 100,000 new millionaires by 2025 – Newmark consultancy
RIO DE JANEIRO, BRAZIL – The number of Brazilians with a net worth of more than US$1 million may reach 481,000 people in 2025, an increase of 29% over 2020 (373,000), according to estimates by British consulting firm Newmark.
To reach these estimates a team of Newmark’s engineers developed a model that estimates the millionaire population based on data from over 600 sources worldwide, including private banking areas, family offices, and consultants. The survey considers net worth including the principal (most valuable) residence.
“Vaccination is a positive sign and marks the beginning of a new economic cycle in a post-pandemic world. The projection for 2021 is that the population with over US$1 million will continue to grow,” said Newmark’s Director of Research and Market Intelligence Mariana Hanania.
The increase of the rich and super-rich will be even greater in China. The study suggests an impressive 56% increase by 2025, reaching the mark of 9 million people with over US$1 million.
The super-rich in China are expected to surpass the 100,000 mark for the first time by 2025. In the U.S., the super-rich should total 223,955 by 2025.
However, survey data show that the number of people with more than US$1 million declined in Brazil during the pandemic.
According to Hanania, this may be related to the Brazilian real’s depreciation against the dollar – the survey’s criterion is American currency. And it also helps to understand the preference for buying luxury goods in Brazilian reais.
“The exchange rate variation in 2019 ranged between R$3.98 and R$4.26, while in the survey interval in 2020 the dollar fluctuated between R$5.28 and R$5.78,” she said, adding that currency fluctuation also leads to a drop in the number of millionaires, particularly in Russia. “The pandemic was also cited as the main reason for the declines.”
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief