Compiled by IPSOS on behalf of Julius Baer, the highly anticipated Julius Baer Global Wealth and Lifestyle Report 2023 offers a comprehensive analysis of the cost of living and lifestyle considerations for high-net-worth individuals (HNWIs) across the globe. This annual report delves into the trends and economic factors shaping the lifestyles of the wealthy in different regions and provides valuable insights into consumer behavior and investment opportunities. Let’s explore the key findings and conclusions of this informative publication.
The Julius Baer Lifestyle Index
The report introduces the Julius Baer Lifestyle Index, which examines the prices of selected consumer goods and services in 25 major cities worldwide. It reveals that the cost of living well in the Americas has risen, pushing it into second place relative to Europe, the Middle East, and Africa. The Americas experienced an average price increase of 12.3%, the lowest among all regions, with notable rises in New York, São Paulo, and Miami. However, luxury consumables and services in the hospitality sector, such as whisky and hotel accommodations, saw the greatest year-on-year price increases.
The Julius Baer Lifestyle Survey
The Julius Baer Lifestyle Survey delves into the consumption patterns and financial needs of HNWIs. The survey findings indicate that Latin American respondents have consistently spent more on travel, hospitality, and fine dining in the past year, with a desire to continue doing so in the future. The survey also highlights the relative affordability of Mexico City compared to other cities in the Index, making it an attractive destination for wealthy individuals and families.
Regional Overviews: Asia
The report’s regional overviews provide insights into specific continents. In Asia, economic growth and prosperity have resulted in significant trade gains, job creation, and fiscal stimulus. The region witnessed a slowing GDP growth rate from 8.1% in 2021 to 0.5% in 2023. Despite inflationary pressures, Latin American economies effectively managed inflation by tightening monetary conditions early on. This year’s Index emphasizes the importance of a less heated political environment for consumer and investor sentiment, particularly benefiting local currencies like the Mexican peso and Brazilian real.
Regional Overviews: EMEA
The report’s analysis of Europe, the Middle East, and Africa (EMEA) reveals the economic backdrop of the region. The resilience of EMEA economies and the continued rise of cities like São Paulo have pushed the Americas ahead of EMEA for the first time in the report’s history. Inflation has been a significant challenge across regions, impacting consumer purchasing power. However, food and energy prices, along with other commodities, have seen a dip in the past year.
Regional Overviews: Americas
The Americas section highlights the rise of cities like New York, São Paulo, and Miami in the global city rankings. Despite the challenges posed by Russia’s invasion of Ukraine and global interest rate hikes, Latin America’s economies have fared well, thanks to solid economic performance and the resurgence of North America. The conclusion emphasizes the region’s fiscal indicators and their importance to investors.
In summary, the Julius Baer Global Wealth and Lifestyle Report 2023 serves as a guidebook for navigating the complex world of high-net-worth living, offering data-driven analysis and expert perspectives on the economic factors influencing the lives of the wealthy. Whether you’re a financial professional, an investor, or simply curious about the evolving dynamics of global wealth, this report provides valuable insights that can shape your understanding and decision-making.