Study Predicts More Millionaires in 2020

June 14, 2011

Unlocking Word Meanings
Read the following words/expressions found in today’s article.

1. predict (v.) [pri-dikt]  – to tell something in advance (especially with a basis)
Example: The skies are gray this morning, so he predicted that it is going to rain later in the afternoon.

2. recession (n.) [ri-sesh-uhn]  – breakdown or downfall
Example: Many people lost their jobs during the economic recession.
3. asset (n.) [as-et] – something one owns which can be exchanged for money
Example: A house can be an asset if it is still in good condition.

4. project (v.)  [proj-ekt] – to calculate or estimate something in the future based on present data
Example: The company officials are trying to project next year’s expenses based on the increasing number of employees.

5. real estate (n.)  [ree-uhl] [ih-steyt] – it refers to a land property including resources and structures like buildings or houses on it
Example: The price of real estate in the US dropped during the great recession.

Read the text below.

A recent study on economy predicts the number of millionaires in the world to double by 2020 despite the financial recession which affected countries worldwide.

Most of the millionaires will come from the US and Europe, but developing economies like China, Brazil and Russia will also produce household millionaires. China and South Korea will be part of the top 10 countries with most number of millionaires within the next decade. Andrew Freeman, the main author of the study, claims that there will be a rapid growth in these regions.

US will remain to be on top of the list with 10 million household millionaires by 2020 despite the fact that 3 million millionaire families lost their assets during the great recession. The report projects that by 2020 the number of millionaires will reach 20.6 million. By then, US will have 43% of the world’s wealth, which is slightly higher from 42% this year.

Japan will be on the second spot, owning 9% of the world’s wealth. But with 8.6 millionaire families, their figure will still be far from US. China is expected to be on the seventh spot with 4% of the world’s wealth by 2020.

Within the US, California will likely have the most number of millionaires, while Wyoming will have the least.  New Jersey, with one fourth of households worth more than $1 million, will have the most number of millionaires in one place.

The report defines wealth by the financial and non-financial assets such as real estate, cars and art.

Viewpoint Discussion
Enjoy a discussion with your tutor. 

Discussion A

·         What do you think are the advantages of being a millionaire?
·         Do you think success can only be measured by how much money you have?

Discussion B

·         Do you think wealthy countries should help poor countries financially? Please explain your answer.
·         In what ways can wealthy countries help poor countries?

June 14, 2011