Asia Pacific the next wealth hotspot, says GlobalData

HONG KONG - By 2021 the average Hong Kong citizen will hold more assets than an individual in Switzerland, according to the data and analytics company GlobalData, which says the value of liquid assets held by the global population will exceed US$100 trillion by the end of 2017, with frontier and emerging economies leading the way in terms of future growth.

 In a report analysing the current dynamics of 71 wealth markets, it estimates that the global wealth market stood at just below US$100 trillion as of December 2016, but will surpass this mark by the end of 2017.  

However, the pace of growth is forecast to slow, recording a compound annual growth rate (CAGR) of just above 5% over 2017–21, down from 7% over the previous five-year period.

With giants like China and India, Asia Pacific will be the best-performing region with growth of over 8%, contrasting with a slow performance in Europe.

Asia Pacific frontier markets are forecast to outperform emerging and mature markets. Countries such as Mongolia and Kazakhstan lead the rankings in terms of forecast CAGR for 2017–21, both in nominal and real terms.

However GlobalData also forecasts that inflation will continue to erode a large portion of frontier markets’ fortunes.

GlobalData Wealth Management analyst, Silvana Amparbeng, says China is second only to the US in the global wealth market rankings, and is forecast to maintain this position up to 2021. India is expected to surpass France by 2021, reaching eighth position.”

Despite their small in size, the populations of Singapore and Hong Kong remain affluent and enjoy an even distribution of wealth. Most individuals in these two markets are richer than in other developed economies, the report says.  www.globaldata.com (ATI).