Ranks of the World’s Rich Grow at Slower Pace

The ranks of the world’s millionaires increased in 2002, but at a slower pace than in the past because of weak global economies and stock market declines.

An annual study released Wednesday estimates there were 7.3 million people in the world with financial assets of $1 million or more at the end of 2002, up 2.1% from the previous year. It was the smallest year-over-year increase in the survey’s 7-year history.

The numbers of millionaires dropped last year in North America, which includes Canada and the United States, and in Latin America, but rose in other regions.

The wealth these people have amassed, meanwhile, grew 3.6% in 2002 to $27.2 trillion, compared with growth of 3% in 2001 to $26.2 trillion, the study showed. In market boom years such as 1999, millionaires saw their wealth grow as much as 18%.

The World Wealth Report was prepared by brokerage Merrill Lynch & Co. and consulting firm Cap Gemini Ernst & Young.

Brokers, bankers and other financial experts watch the figures closely because people with high net worth tend to be their best customers, although they represent a small fraction of the world’s 6.3 billion people.

The study predicts that their wealth will increase an average of 7% a year over the next five years to $38 trillion at the end of 2007.