- Asia Pacific stands out as the key contributor of global wealth growth, accounting for 36% of global wealth creation since 2000 and 54% since 2010
The Credit Suisse Research Institute today released its second annual Global Wealth Report, which finds that Asia Pacific emerges as the key contributor of global wealth growth, accounting for 36% of all global wealth creation since 2000, and 54% since January 2010. Total global wealth has increased 14% from USD 203 trillion in January 2010 to USD 231 trillion in June 2011. Emerging markets remain the main wealth growth engine, with the fastest growth seen in Latin America, Africa and Asia. In the next five years, global wealth is expected to rise by 50% to USD 345 trillion and wealth per adult to increase 40% to reach USD 70,700, led by growth in emerging markets. The Report finds that emerging markets have considerable scope to increase personal wealth given their much lower ratio of net financial assets to income and a much lower debt-income ratio than found in mature economies. Aging is also expected to increase the demand for financial assets relative to real assets like housing.
Osama Abbasi, Chief Executive Officer Asia Pacific, Credit Suisse said: “Our second edition of the Global Wealth Report reconfirms again that these are times of unprecedented economic change, and a radical reconfiguration of the world’s economic order is taking shape. Emerging markets are important drivers of the global recovery and remain the key growth engines of global wealth.”
The Credit Suisse Global Wealth Report 2011 finds that total global wealth increased 14% from USD 203 trillion in January 2010 to USD 231 trillion in June 2011 on the back of continued economic recovery from the global financial crisis. Wealth per adult increased 9% from USD 46,600 in January 2010 to USD 51,000 in June 2011 with the fastest growth registered in Latin America, Africa and Asia. The USA stood out as the largest wealth generator in the world over the 18 months, adding USD 4.6 trillion to global wealth. Asia Pacific was the main contributor to the rise in global wealth during the period, with China, Japan, Australia and India among the top six contributors to global wealth accumulation . Asia Pacific stands out as the key contributor of global wealth growth, accounting for 36% of global wealth creation since 2000 and 54% since 2010.
Total household wealth in Asia Pacific increased 23% from USD 61 trillion in January 2010 to USD 75 trillion in June 2011. This sharply contrasted with the 9.2% and 4.8% total wealth growth in North America and Europe over the same period respectively, reflective of the global megatrend of the continued shift of economic power from the developed world to emerging economies. The Report finds that Europeans are sitting on much higher average debt per adult at USD 25, 550, versus USD 9,227 in Asia Pacific. The sharp divergence in indebtedness in Europe and Asia provides significant scope for Asia and Europe to work together to relieve the euro debt crisis.