Growth in Brazil’s wealthy to pick up

At the end of 2014 there were 198,500 millionaires (HNWIs) in Brazil, collectively holding US$1 trillion of the total individual wealth in the country. The number of multimillionaires (UHNWIs), defined as those with more than US$30 million, increased by 3.4% to an estimated 4,220 in 2014.

“Amid a currency in turmoil, a public sector mired by corruption scandals and a global commodities slump, Brazil’s wealthy population have not fared well. There was an overall decline in Brazil’s HNWI population between 2013-14 while globally their numbers increase,” comments Oliver Williams, Head of WealthInsight.

Brazil’s wealthy set to grow

However, WealthInsight predicts that the number of wealthy Brazilians is set to grow over the forecast period. By 2019 the country will have 227,700 millionaires, with their wealth estimated to grow by 28.1% to reach US$1.3 trillion, while the number of multimillionaires is set to increase by 15.7%, to reach 4,950.

“Our research shows a more positive outlook over the next five years. This is partly due to a shift in the source of wealth to financial services as well as slicker wealth management practices stowing funds offshore. This comes following a week that has seen the Brazilian real rebound in its biggest rally in 7 years,” says Williams.

Financial services as the primary source of wealth

Financial services is the most important industry from which both Brazilian millionaires and multimillionaires have acquired their wealth. WealthInsight has found that 14.6% of millionaires and 17.7% of multimillionaires acquired their wealth from financial services. Other important industries for Brazilian millionaires include media (11.8%), transport and logistics (10.8%), basic materials (8.4%) and retail, fashion and luxury goods (8%).