Oct. 19 (Bloomberg) -- Global wealth will rise almost 50 percent in the next five years, led by an increase in the number of affluent households in Latin America, Africa and Asia, according to Credit Suisse Group AG.
Total wealth will climb to $345 trillion in 2016 from $231 trillion in June, equivalent to an annual increase of 8.4 percent, Credit Suisse said in its second annual global wealth report released in Hong Kong today. In the 18 months to June, total wealth advanced 14 percent from $203 trillion.
Emerging markets have “considerable scope” for households to boost wealth on rising incomes and lower debt levels than in mature economies, the report found. Total household wealth in the Asia-Pacific region jumped 23 percent to $75 trillion over the 18 months to June, outpacing North America’s 9.2 percent and Europe’s 4.8 percent growth rates.
“This fast emerging wealth will drive new trends in consumption and investment in Asia,” Giles Keating, Credit Suisse’s global head of research for private banking, said in a statement. Asia’s higher rate of wealth creation means “there may be scope for mutual collaboration to help mitigate the euro debt crisis,” Keating said.
Wealth in China is forecast to climb by more than 90 percent to $39 trillion in 2016, overtaking Japan, which will have $31 trillion, the report said. India and Brazil’s wealth will more than double to $8.9 trillion and $9.2 trillion respectively.
Globally, 29.7 million adults have more than $1 million, accounting for less than 1 percent of the world’s population and 39 percent of global household wealth.
Switzerland, Australia and Norway are the world’s richest nations measured by average wealth per adult, who hold $540,010, $396,745 and $355,925 respectively, the report found. Wealth is defined as financial and real assets including housing owned by individuals minus debt.
Europeans have an average of $25,550 in debt each, while in Asia the figure is $9,227, according to the report.
Credit Suisse said the report looks at the wealth distribution of the world’s 4.5 billion adults, covering more than 200 countries.
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