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Global household wealth increases by 8.3%: report

Global wealth per adult reached a new all-time high of $ 56,000, rising by $ 3,450, the highest rise recorded since the 2008 financial crisis.

In India, wealth per adult in constant currency is at an all-time high of $ 5,760. However, owing to rupee depreciation, in current US dollar terms wealth per adult has not yet regained its 2010 peak, and is at $ 4,650 in mid-2014.

The Credit Suisse Research Institute today released its fifth annual Global Wealth Report, which finds that from mid-2013 to mid-2014 aggregate global household wealth increased by 8.3% in current dollar terms to $ 263 trillion, despite an ongoing challenging economic environment.

Giles Keating, Global Head of Research for Private Banking & Wealth Management, Credit Suisse, said: “The fifth annual Credit Suisse Global Wealth Report shows a $ 20.1 trillion rise in wealth to $ 263 trillion. North America and Europe stand out this year, with percentage gains exceeding 10% in both cases. Developing economies have lagged as a result of weaker asset prices and currency pressures.”

Commenting on the growth in wealth in India, Toral Munshi, Credit Suisse Head of India Equity Research, Wealth Management, said: “Our report indicates that a small proportion of the Indian population (0.3%) has a net worth over $ 100,000. However, due to India’s large population, this translates into 2.8 million people. Over the last decade itself, the number of people with net worth between $ 100,000 to 1 million, has doubled from 1.3 million to 2.6 million. India has a significant number of members in the top wealth, 238,000 members of the top 1% of global wealth holders, which equates to a 0.5% share.”

Wealth per adult in India (in rupees) has grown quite steadily, averaging an 8% annual increase over 2000-2014. Until the global financial crisis wealth also rose strongly in US dollar terms, from $ 2,040 in 2000 to $ 5,100 in 2007. After falling 25% in 2008, it rebounded, reaching $ 5,400 in 2010, but then fell 13% in 2011 due to adverse exchange rate movements. Depreciation of the rupee has continued since, at a slower rate, so that wealth per adult has not regained its previous peak and was just $ 4,650 in mid-2014.

The new data on millionaire trends indicates that the number of millionaires has increased significantly since 2000, rising by 164% over the period, to 34.8 million individuals today.

The USA has 41% of global millionaires. From 2007 to 2009, the number of HNW individuals in Europe briefly overtook the USA, only to fall behind since then. Japan’s share also fell to below 10% a year ago and is now down to 8%.

Worldwide there are 128,000 UHNW individuals, those with net assets exceeding $ 50 million, against 41,000 in 2000. Of these, 45,000 are worth at least $ 100 million (against 14,000 in 2000) and 4,300 have assets above $ 500 million (1,200 in 2000). The USA dominates the regional ranking, with 63,000 UHNW residents (49%), while Europe has 31,000(24%), and 26,000(20%) reside in Asia-Pacific, including China and India. China today has as many UHNW individuals as all of Europe had in 2001.

Household wealth in India is projected to grow by more than 50% by 2019, but this could be surpassed if there are fundamental economic reforms. On a per-adult basis the growth rate will be well above the global average, rising by 37% to $ 6,400 per adult. Emerging markets other than China and India account for 9% of global wealth, and could grow by 46%, enabling wealth per adult to rise by 33% to $ 15,500. Of the additional 401 million adults in the middle segment by 2019, 75% are from Asia-Pacific (including China and India).

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