Sunday Times 2
Asia to overtake America in millionaire race
Asia is close to overtaking North America in the global wealth stakes, as the number of millionaires living there continues to grow faster than anywhere else in the world.
Millionaires based in the region rose by 17.3 per cent in 2013, taking the total to 4.32million – just 10,000 behind those living in the U.S. or Canada.
Closing in: Millionaires based in Asia-Pacific rose by 17.3 per cent in 2013, taking the total to 4.32million. This is just 10,000 behind the 4.33million millionaires living in the U.S. or Canada
While North America continues to house more high net worth individuals than any other region, Asia-Pacific is predicted to overtake it in the very near future – probably at some point this year.
North America is home to 4.33million people with investable assets valued at over $1million, according to the latest World Wealth Report by Capgemini and RBC Wealth Management.
The combined wealth of these individuals is a staggering $14.8trillion, up from $12.7trillion in 2012.
The number of millionaires living in Asia-Pacific is expected to surpass North America at some point this year. The figure was only 10,000 behind North America in 2013, but growing 5.8 per cent faster.
In terms of total value of these high net worth individuals, Asia-Pacific will probably overtake North America the following year, as it’s 18.2 per cent growth rate in this category is 1.2 per cent stronger.
The combined wealth of Asia-Pacific’s millionaires currently stands at $14.2trillion, up from $12trillion in 2012.
‘Looking at longer term growth trends, nearly 40 per cent of the current level of high net worth wealth has been created in the past five years alone,’ said George Lewis, group head of RBC Wealth Management.
‘Overall, 2013 was another strong year for the high net worth market, with surging equity markets and improving economies contributing to double digit growth in both population and wealth levels,’ he added.
Europe’s millionaire population grew by 12 per cent to reach 3.83 million last year, with their combined wealth rising by 14 per cent to reach $12.39trillion.
Both figures represent significant increases since 2011.
Latin America, meanwhile, was once again the exception to strong global growth in high net worth individuals, increasing by only four per cent between 2012 and 2013.
This disappointing rate of growth is underlined by an even slower rise in total wealth, taking the figure from $7.5trillion in 2012 to $7.6trillion last year.
This has been blamed on weak GDP growth and unstable equity markets in the region.
Globally, RBC and Capgemini forecast millionaires’ wealth to grow at an annual rate of 6.9 per cent, reaching $64.3trillion in 2016.
© Daily Mail, London