LAST year, global private wealth grew by 12%, or $17.5 trillion, to reach $164 trillion (in stocks, bonds, savings and cash) according to a report released this week by BCG, a consultancy. Good news for many, but particularly for Asia, where private wealth grew by a whopping 29% compared to 5.6% in North America and 6.6% in Europe.
For the first time in modern history, Asia is now richer than Europe. And it is catching up with North America too; by 2019 the region’s wealth is expected to reach $75 trillion compared to $63 trillion in North America. And although America is still the country with by far the most millionaires in the world, of the 2m new millionaire households created last year 62% are from Asia-Pacific. China is the main driver here; it will account for 70% of Asia’s growth between now and 2019, predicts BCG, and by 2021 it will overtake America as the world’s wealthiest nation.
At the same time, the world’s wealth is being concentrated in fewer pockets. Whereas in 2012 38% was held by millionaires, in 2014 this was 42% and the trend is increasing. Whereas households with more than a million dollars in the bank saw their wealth swell by 16% on average, those with less wealth saw it grow by only 9%.
Where is all this wealth coming from? Strong performance by stocks, which now make up 39% of private wealth compared to 31% in 2009,...Continue reading
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