Gen Z Set to Represent 30% of Global Population and Generate $74 Trillion in Income by 2040, Says Bank of America

Generation Z is poised to become a major force in the global economy, making up about 30% of the global population within the next decade.

Their income is expected to reach $36 trillion in the next five years and potentially rise to $74 trillion by 2040.

Gen Z’s spending habits are significantly influencing the economy, as their growth in spending on both necessary and discretionary items surpasses that of the broader population.

Despite maintaining some savings, their spending is nearly double their savings due to high living costs.

While wage growth provides some relief, Gen Z faces a tough labor market, with a 32% increase in households receiving unemployment benefits year-over-year and rising unemployment among new entrants.

This generation will be the largest and richest by 2035, bank report shows