“Employing forecasts from the International Monetary Fund, Credit Suisse expects total household wealth to rise by almost 50% in the next five years from US$223 trillion in 2012 to US$330 trillion in 2017, assuming moderate and stable economic growth.
The number of millionaires worldwide is expected to increase by about 18 million, reaching 46 million in 2017. China is expected to add a total of US$18 trillion to the stock of global wealth in the next five years and surpass Japan as the second-wealthiest country in the world.
Credit Suisse’s estimates suggest that the number of global millionaires could exceed 46 million by 2017, a rise of more than 18 million.
While the number of millionaires in emerging economies is still well below the level in the U.S. (16.9 million) and Europe (15.4 million), it is expected to increase substantially in the next few years. China could see its number double by 2017, raising the total to almost two million.
Credit Suisse also expects to see a substantial increase in the number of millionaires in Brazil (a rise of 170,000), India (84,000), Singapore (93,000), Mexico (112,000) and Indonesia (103,000). In addition, the number of millionaires in transition economies is predicted to rise substantially over the nexxt five years, reaching more than 200,000 in Russia, 78,000 in Poland and 40,000 in the Czech Republic.”
That of course is the bad news.., “One caveat, financial wealth is highly correlated to the value of equities, which tend to be fairly volatile during times of economic stress due to the uncertainty surrounding the outlook for corporate earnings. Credit Suisse’s estimates are based on the assumption that earnings growth will be in line with consensus expectations. If risk aversion continues and earnings growth is worse than expected, the effect on wealth accumulation could be substantial.”
Jack A. Bass is the author of The Gold Investor’s Handbook
Click here for investment profits and much more detail on the ins and outs of investing in gold
- China’s super-rich get poorer (chinadailymail.com)
- Where the World’s Millionaires Live – in 1 Graph (theatlantic.com)
- China May Surpass Japan as World’s Second-Most Wealthy by 2017 – Bloomberg (bloomberg.com)
Categories: Finance & Economy