Wealth per adult in India at $7,020, China at $47,810

Irving Hamilton
October 21, 2018

Amidst the increasing inequality, the country added a whopping 7,300 millionaires during the 12 months to mid-2018, taking the total number of dollar-millionaires to 3.43 lakh, with a collective net worth of around $6 trillion, says the report. The astounding rise in wealth per adult, 146 percent since 2000, can be attributed to increases in asset prices, high savings and a climbing exchange rate from the years of 2005 to 2012.

China's total wealth has climbed 1,300 percent in the 21st century to 51.9 trillion USA dollars, more than double the rate of any other nation, says the report.

To determine the level of wealth Credit Suisse considers both financial (e.g., Bank deposits) and nonfinancial assets (e.g., real estate).

Looking ahead, the Credit Suisse report said global wealth is projected to climb by about 26% over the next five years to $399 trillion.

In Asia-Pacific, the number of millionaires is expected to rise 7.6 percent per annum to reach 15 million in 2023, while the UHNW (ultra high networth wealth) segment is forecast to grow to around 58,300 at 8 percent annually, with 46 percent in China.

That works out to US$283,000 for each adult, the ninth-highest in the world.

Currency depreciation against the U.S. dollar also affected wealth trends in some major regional economies, such as Australia and India. The report said there was evidence that suggests the wealth growth pattern has recently shifted back toward the pre-financial crisis pattern.

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Overall, global wealth increased by an average of 4.6 percent to $317 trillion during the 12 months to mid-2018 and increased by $14 trillion a year ago.

The composition of household wealth in Australia is heavily skewed towards non-financial assets, which averaged $US304,500 and form 60% of gross household assets.

The U.S. capped its 10th straight year of household wealth growth and is set to remain as the world's biggest hub for rich individuals even as China starts to close the gap, according to Credit Suisse Group AG.

The total wealth of Romanians is USD 659 billion this year, compared to USD 322 billion in the case of Hungarians or USD 174 billion for Bulgarians, Credit Suisse says.

Switzerland remains the richest nation in the world with its wealth per adult of US$530,240, followed by Australia with US$411,060. However, holding exchange rates constant, total wealth grew strongly at 9.7 per cent.

Non-financial assets were the main growth drivers in all regions except North America, and accounted for 75 per cent of wealth growth in China and Europe and 100 per cent in India. Asia-Pacific (including China and India) emerged on top as the largest wealth region, as household wealth grew 3 per cent to more than US$114 trillion.

"Since the global financial crisis, wealth inequality has trended upward, propelled in part by the rising share of financial assets, and a strengthening USA dollar", Anthony Shorrocks, a British economist and one of the report's authors, said in a statement. By 2023, the wealth of Indian millionaires is expected to grow by 8 per cent per annum to reach United States dollars 8.8 trillion with an estimated 5,26,000 millionaires, an increase of more than 53 per cent or 8.9 per cent per annum.

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