Desi wealthy club adds 7,300, totalling 3.43 lakh worth USD 6 trillion

Marco Green
October 21, 2018

CSRI report said Asia Pacific countries continue to make significant contribution to global high net worth wealth pool, with China, Japan, Australia, Korea and Taiwan making up more than 8.8 million millionaires, representing over 20 per cent of the global total.

China's total wealth has climbed 1,300 percent in the 21st century to 51.9 trillion USA dollars, more than double the rate of any other nation, says the report. Much of the year-on-year variation in wealth levels can be traced to changes in asset prices and exchange rates and had the heaviest impact in Latin America and parts of Asia Pacific. The report forecasts the number of millionaires will surge to 55 million.

"China has advanced so rapidly this century that a wealth gap that once appeared unassailable could vanish within a generation", the report said.

That works out to US$283,000 for each adult, the ninth-highest in the world.

The currency depreciation against the U.S. dollar affected wealth trends in some of the major regional economies such as Australia and India, John Woods, Chief Investment Officer Credit Suisse-Asia Pacific, said.

"There is still considerable wealth poverty, reflected in the fact that 91 per cent of the adult population has wealth below $10,000", the report said.

Globally, aggregate wealth rose 4.6 per cent to US$317 trillion from mid-2017 to mid-2018.

It said Indians' personal wealth is dominated by property and other real assets, which make up 91 per cent of estimated household assets.

By 2023, the wealth of Indian millionaires is expected to grow by 8 per cent per annum to reach $8.8 trillion with an estimated 5,26,000 millionaires, an increase of more than 53 per cent or 8.9 per cent per annum.

"We are fortunate to live in a country where median household wealth and wealth per adult are the world's first and second highest, proving that collectively as a nation we are not just very wealthy, but also that our wealth inequality is much lower than other developed countries", Credit Suisse Australia CEO John Knox.

This 2018 report also discussed global wealth holdings for women, who hold 40% of global wealth, as well as the shrinking wealth gap between the top two tiers and the bottom two tiers of the global wealth pyramid. Credit Suisse is projecting that more adults will continue to possess a wealth of more than $10,000 by 2023.

Meanwhile, China has the second-largest household wealth after adding US$2.3 trillion to reach US$52 trillion.

Non-financial assets were the main growth drivers in all regions except North America, and accounted for 75% of wealth growth in China and Europe, and 100% in India.

Credit Suisse projections for overall global wealth predict an nearly 4.7 percent per annum rise over the next five years to reach US$399 trillion by 2023.

While Singapore's average debt of US$53,000, which is 16 percent of total assets, is fairly moderate for a high-wealth country, its household wealth experienced a strong increase at 7.4 percent to around US$1.3 trillion.

Emerging markets wealth will grow at a faster rate of 7.3 percent per annum and will be responsible for 32 percent of the growth, despite accounting for just 21 percent of the current wealth.

Other reports by Click Lancashire

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