Oct. 9 – India’s robust economic growth is likely to drive the country’s fortune to a massive US$6.4 trillion in the next five years, reflecting a nearly two-fold jump from the country’s current wealth, says the Credit Suisse Global Wealth Report.
The total wealth of India has already tripled in the past decade to US$3.5 trillion. By 2015, the country’s wealth could nearly double to US$6.4 trillion. Current global wealth, which stands at US$195 trillion will also rise by an impressive 61 percent to US$315 trillion by 2015, primarily driven by the robust economic expansion in emerging markets.
The Asia Pacific region boasts more billionaires than Europe. There are over 1,000 billionaires globally, of which 500 are in North America, followed by 245 in Asia Pacific and 230 in Europe.
The report also said that there were 24 million high net worth individuals (HNIs), whose average wealth per adult stood in the range of US$1 million to US$50 million. China has over 800,000 HNIs, India has around 170,000 while rest of the Asia Pacific region has over four million HNIs.
In terms of the countries generating maximum wealth, the United States has emerged as the topper with the total of US$54.6 trillion of household wealth followed by Japan at US$21 trillion and China at US$16.5 trillion.
Notably, most parts of Asia Pacific – ranging from commodities-driven economies such as New Zealand and Australia to fast-growing emerging economies such as China, India and the Association of Southeast Asian Nations – have recorded an exorbitant growth of 100 percent to almost 400 percent in average wealth per adult. Such growth is much higher than the average global wealth per adult growth rate of 42 percent.
“The report confirms that Asia Pacific countries, which now make up the bulk of the world’s middle class of emerging consumers, are driving the growth of the world’s wealth,” Credit Suisse CEO (Asia Pacific) Osama Abbasi said.
Also, the middle segment of the wealth, which is composed of one billion individuals whose average wealth per adult falls in the range of US$10,000 to US$1 million, is located in the fastest-growing economies of the world that hold one-sixth, or US$32 trillion, of global wealth. In total, almost 60 percent, or 587 million individuals, in the middle segment of the wealth pyramid are located in the Asia Pacific region.
The report also pointed out that if historical-level growth trends continue, total household wealth in China could rise 111 percent to US$35 trillion by 2015, outstripping Japan to become the second highest in the world.