The Daily Update - Millionaires

Today we have to credit our good friend Mr Andrew Main for the daily which we hope you enjoy, the alternative was to review Brexit, but we thought a well-earned rest from that subject was deserved.

I read the outline of a recent study by the New World Wealth Report from South Africa which pointed out in the last year some 82,000 millionaires had moved their residency.

We are used to seeing the pictures of fleeing refugees moving countries but do we ever think about the effects of millionaires moving. Given that these families are likely to have accumulated their wealth over some time and even generations, some of these may have a profound effect on the make-up of a town or region in a country. They will more importantly be noted by their absence to take risk in their homeland but instead are likely to be building for the future where they feel safe.

So which countries in the top 5 stand out as the most worrying? Is it the 9,000 from China or 6,000 from India. I think not as both these are rapidly developing economies with very large population where their absence may not be noticed.

What worries us more is the sudden rush of departures from places like Turkey with 6,000 leaving against about 1,000 in 2012, Brazil which has jumped from 2,000 to 8,000 over the same period. Perhaps the most concerning is the continuing departures from France which hit 12,000 in 2016. These also tend to be from one city and ethnic group, the Jewish population of Paris which is increasingly feeling vulnerable to changes in France. Paris’ loss has been Tel Aviv and London's gain.

So where are the millionaires going? Australia gained 11,000 with a high proportion coming from China. Also New Zealand gained 4,000, this may well reflect the family structures looking to settle at each end of the developing trading relationships. The USA (10,000) and Canada (8,000) are fairly normal numbers but there has been a sharp growth in Dubai with 5,000 arrivals.

Elsewhere there have been very sharp increases in Mauritius from a low numeric base which now has over 3,200 resident millionaires in 2015, a 340% increase on 2000. This is expected to reach 7,400 by 2025.

Hollowing out of wealth can have long term lasting economic damage just as gaining the wealth in a community can have many economic gains. Maybe we should pay more attention to this review every February when it is released.