The transfer of wealth from the Europe and the United States to the Asia Pacific has been occurring for years now in the light the economic growth from Mainland China and India, and it is possible that by 2016 the world’s richest region could become Asia Pacific, taking the title away from North America.
China now has more millionaires than all other countries but the US. And it’s possible with China’s booming stock market, and as their businesses continue to reach for opportunities abroad, more wealth will be created, pushing China in the number one spot in a few years.
But China’s economic growth and wealth creation has not only benefited Chinese peoples’ it has also brought wealth for Southeast Asian economies and other emerging parts of Asia.
According to the Boston Consulting Group’s Global Wealth 2015: Winning The Growth Game report, which represents a portrait of the global wealth management industry, the solid market performance and economic wealth generated from China and India are fuelling wealth creation across Asia Pacific (Excluding Japan).
Due to strong domestic demand, the value of existing assets of wealthy individuals significantly increased, which accounted for 76% of their region’s growth in private wealth. According to the report, private wealth held in equities rose the most (48%) followed by wealth held in bonds (39%) and in cash and deposits (16%).
Wealth Distribution in Asia Pacific
Asia Pacific (Excluding Japan) private wealth growth has been the most impressive on the globe, far outpacing Western Europe, Latin America and North America. The report states that private wealth in Asia-Pacific (excluding Japan) expanded by a steep 29% in 2014 (compared with 27% the previous year) to reach US$47 trillion. This powerful performance enabled the region to surpass Eastern and Western Europe combined as the second-largest regional pool for private wealth. With a projected CAGR of almost 10 percent, private wealth in Asia-Pacific (excluding Japan) will rise to an estimated $75 trillion in 2019.
Asia Pacific Becoming the World’s Richest Region
If Asia Pacific continues to develop at its current pace, the region would become the world’s richest region by 2016, with $57 million in private wealth, according to the report. But with China’s economic slowdown, and pains in India’s economic rebalancing, the title for being the richest region on the planet may be delayed a few years.
