The phenomenon of expatriation is not just a temporary trend but a long-term global shift. As millions of people relocate each year for work, education, or retirement, understanding the dynamics of the global expatriate population provides valuable insight for investors, governments, and global businesses. Although it is difficult to pinpoint an exact annual figure for worldwide expatriation, we can examine existing data to comprehend the broader trends.
The Growing Global Expatriate Population
In 2017, the global expatriate population was estimated to be 66.2 million people, reflecting a robust compound annual growth rate (CAGR) of 5.8% since 2013. By 2021, projections indicated that the number could reach 87.5 million, showing the significant pace at which individuals are choosing to live and work outside their home countries. This trend underlines the expanding global interconnectedness and the increasing flexibility in both corporate and individual relocation.
To put this into perspective, the expatriate population as a percentage of the world population grew from 0.75% in 2013 to 0.90% in 2017, with an expected increase to 1.13% by 2021. Notably, the expatriate segment has been growing faster than the general immigrant population, signaling a shift towards more strategic and often temporary forms of migration driven by job opportunities, lifestyle choices, and global mobility programs.
Expatriate Demographics: Who Are the Expats?
Breaking down the demographics of expatriates provides further clarity into the factors driving global mobility. As of 2017, the majority—71.1%—of expatriates were individual workers, relocating for career advancement, better employment prospects, or high-skilled positions. Other significant groups include students (8.5%), who are increasingly opting for international education opportunities, and retired expatriates (5.2%), many of whom seek a more affordable or desirable quality of life in other countries.
Interestingly, a small portion, 1.0%, were corporate transferees and other professionals moved by companies. The remaining 14.1% comprised non-employed spouses and children, reflecting the fact that expatriation is often a family decision and not just an individual one.
American Expatriates: A Closer Look
Though we lack precise annual figures on how many Americans choose to expatriate each year, the overall number of U.S. citizens living abroad is notable. The Association of Americans Resident Overseas (AARO) estimated that at least 5.4 million Americans lived abroad in 2023, and this figure rises to around 5.6 to 5.7 million when accounting for military personnel and their families. This substantial population of American expatriates indicates not only the appeal of international opportunities but also the need for specialized financial and tax planning services.
The Canadian Expatriate Experience
Canada provides another illustrative example of a country with a significant expatriate community. In 2016, estimates placed the number of Canadian citizens living abroad at around 4 million, with potential variations between 2.95 million and 5.55 million depending on different scenarios and assumptions. Canadians, much like their American counterparts, seek opportunities in different regions, influenced by professional, educational, and personal aspirations.
What This Means for Investors
For those involved in offshore investments and global markets, the steady rise in expatriation represents both opportunities and challenges. The global nature of the expatriate workforce drives demand for international housing, financial services, healthcare, and education. It also opens up new markets for investment, particularly in countries and regions that attract large expatriate populations.
Furthermore, the increasing expatriate demographic emphasizes the need for comprehensive cross-border financial planning. For example, managing tax obligations, securing property abroad, or investing in emerging markets all require strategic insights that cater to the specific needs of this growing group.
Conclusion
Expatriation is on the rise, and the implications are profound for international investment and economic growth. With the global expatriate population expanding faster than ever, this trend is set to reshape industries and open up new opportunities. At Invest Offshore, we remain committed to helping our clients navigate these complex and dynamic landscapes. From investment options in the Central African Copperbelt to real estate opportunities in the Caribbean, we provide tailored solutions for those looking to take advantage of our increasingly global world.
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