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MUMBAI -- Global household wealth increased by nearly 5% year-on-year to reach $241 trillion in mid-2013, says the Credit Suisse Global Wealth Report. Asia Pacific is forecast to see 8.4% annual wealth growth to $110 trillion by 2018, overtaking North America as the world's wealthiest region from 2017. Wealth in India increased by 7.4% to $3.6 trillion in mid-2013, it adds.

North America overtook Asia Pacific and Europe to be the wealthiest region with an 11.9% wealth growth to $78.9 trillion, fuelled by a recovery in house prices and a bull equity market in the US. As a result of a 22% depreciation of the Japanese yen against the US dollar during the period, household wealth in Japan dropped 20.5% to $22.6 trillion, leading total wealth in Asia Pacific to decline by 3.7% to $73.9 trillion. However, Asia Pacific ex-Japan continued to register stable wealth growth of 6.2% to$51.3 trillion in mid-2013, with India registering $3.6 trillion in total wealth, an increase of 7.4%.

The report say that only 0.4%of the Indian population has net worth over $100,000. However, due to India's large population, this translates into 2.8 million people. India has 254,000 members of the top 1% of global wealth holders, which equates to a 0.5% share, while the number of millionaires here is expected to rise from 182,000 in 2013 to 302,000 by 2018. Wealth per adult in India is expected to rise at a CAGR of 9.3% to $6,600 by 2018, it adds.

Commenting on the India, Toral Munshi, Credit Suisse head of India equity research, wealth management said "Our fourth edition of the Global Wealth Report reconfirms again that Asia Pacific, which accounts for 31% of global household wealth and 61% of the world's middle class of emerging consumers, remains the key growth engine of the world economy and wealth creation. As the world's largest democracy with a strong federal structure and vibrant markets, India wealth has seen rapid growth since the year 2000. Wealth per adult has risen by 135% from $2,000 in 2000 to $4,700 in 2013, at an average rate of 8%."

Giles Keating, global head of research for private banking and wealth management, Credit Suisse, said: "The fourth annual Credit Suisse Global Wealth Report shows a $11 trillion rise in wealth to $241 trillion, with the US as the clear winner, overtaking Europe, while APAC fell back due to sharp depreciation of the yen. We look at wealth mobility for the first time and it appears surprisingly high. For instance, less than two-thirds of the 2000-01 Forbes billionaires remained on the list by 2005, and barely half were on it by the end of the decade."

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Publication:Pakistan & Gulf Economist
Date:Oct 27, 2013

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