North America is well and truly approaching the fag end of its time on top of the global economy, with the Asia-Pacific region predicted to outstrip its position as the world’s biggest source of wealth in the next four years, propelled by China and India.
Outside of North America and Europe, the Asia-Pacific region (with the exclusion of Japan) saw the biggest rise in growth of wealth in 2012, soaring g 13.8 percent to $28 trillion.
By 2017, this figure is expected to leap to $48 trillion by the end of 2017, largely fuelled by the creation of new wealth in the region. With the help of Japan’s deflation busting PM Shinzo Abe, Japanese finances are also optimistically expected to blossom in the coming years.
Whilst Japan and China ostensibly boast the highest number of millionaire households, Hong Kong and Singapore old the most actual millionaires- possibly attributable in part to generous sweeteners by local governments to entice the super rich.
This rise in mega bucks residents residing in Asia is good news for wealth management firms, however on the flipside; widening gaps in income equality in countries such as China may long term serve to foster growing social unrest
In 2012, 8.2% of Hong Kong residents were worth one million dollars plus, excluding the value of their properties. Hong Kong can also lay claim to having the highest population density of billionaires in Asia.
According to one consultancy firm, “New-world regions will account for nearly 70 percent of the growth in global private wealth over the next five years.” High savings rates and continued strong growth in gross domestic product in developing economies will also contribute to this boom in fortunes.
This rise in mega bucks residents residing in Asia is good news for wealth management firms, however on the flipside; widening gaps in income equality in countries such as China may long term serve to foster growing social unrest. Compounding these fears is the forecast that those on lower incomes will also see their wealth grow at a slower rate than those higher up the ladder.
Nonetheless, for those seeking to cash in, heading east seems to be a safe bet.
