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Analyzing the wealth of the world's adult population

The Credit Suisse Research Institute published its second Global Wealth Report on October 19, 2011. Analyzing the wealth of the world's entire adult population, across countries and regions, it offers a host of new insights and perspectives.

The Credit Suisse Global Wealth Report is the only study that analyses the wealth of the world's entire adult population - 4.5 billion people. The analysis therefore spans the entire wealth spectrum, from the very wealthy, to the fast growing, though to the less well-off middle and bottom layers of the wealth pyramid, which are the forces behind emerging trends in consumption and economic power.

Wealth is measured in the study as the net of financial and non-financial (largely property) assets, less debt. Many factors influence the evolution of household wealth, including property rights and other institutional considerations, the maturity of financial markets and financial instruments, and the extent to which public provision of retirement pensions and medical treatment mitigates the need for private accumulation. But the single most important factor in developed economies is the level of household income. As real incomes grow and price inflation erodes purchasing power, the value of household wealth also tends to rise. The interesting question is the relation between income and wealth over time, and the reasons for deviations from the long run pattern.

What Does the Future Hold?

Despite the financial crisis starting in 2007, global household wealth increased by 117 trillion US dollars between 2000 and 2011, with the share of emerging markets trending strongly upwards. But what is likely to happen in the near future? Total household wealth will likely rise by 50 percent in the next five years from 231 trillion US dollars in 2011 to 345 trillion US dollars in 2016, equivalent to 8.4 percent growth per year. Net worth per adult worldwide is expected to reach 70,700 US dollars in the year 2016, an increase of almost 40 percent over 2011.

According to estimates, China will replace Japan as the second-wealthiest country in the world, with total household wealth of 39 trillion US dollars in 2016, compared to 31 trillion US dollars for Japan. The US is expected to maintain its supremacy in the wealth ranking, with a projected total household wealth of 82 trillion US dollars. Well behind in fourth and fifth places are France and Germany with 20.1 trillion US dollars and 19.6 trillion US dollars, respectively.

Over the next five years, there will likely be a big improvement in the position of emerging economies. Wealth in both China and Africa as a whole is projected to rise by over 90 percent, but India and Brazil are forecast to do even better, with personal wealth more than doublingby 2016.

India, Brazil and China: Striking Cases

The case of India is particularly striking. With total wealth of 4.1 trillion US dollars in 2011, India's household wealth is comparable to the US in 1916. But, during the next five years, India is projected to gain as much wealth as the US achieved over the course of 30 years beginning in 1916. This is due to an increase in wealth per adult accompanied by a significant rise in the adult population. The case of Brazil is also noteworthy. With household wealth expected to reach 9.2 trillion US dollars by 2016 – a level comparable to the US in 1948 – the rise in wealth in the next five years should correspond to the gain in the US over the 23-year period from 1925 to 1948. Total household wealth in China is currently 20.1 trillion US dollars, equivalent to that recorded for the US in 1968. If recent trends continue, by 2016 China could reach the wealth level that the US achieved in 1990 – a jump of 22 US years in just five years.

The Romania of millionaires in dollars: over 16,000 Romanians brought the country on 47th place in the top of rich people

Romania has 16,528 inhabitants with wealth over one million dollars, out of whom two billionaires and it on the 47th place according to the number of rich people, while according to the average wealth of a Romanian, of 13,978 dollars it is placed on 59th place out of 160 countries, according to the Global Wealth Report of Credit Suisse.

More precisely, Romania has 14,578 people with wealth between 1 and 5 million dollars, 1,173 people with wealth between 5 and 10 million dollars, 685 between 10 and 50 million dollars, 55 between 50 – 100 million dollars, out of whom 2 are billionaires, according to the quoted report. The average wealth of a Romania is worth 13,987 dollars, while 24.5% of the adult population of Romania has an average wealth of under 1,000 dollars, 44% are between 1,000 and 10,000 dollars, 29.4% have between 10,000 and 100,000 dollars and 2.1% have over 100,000 dollars.

The adult population of Romania is 0.37% of the total number of adults at global level, while the wealth of the Romanians is 0.13% of the total at global level. By comparison to last year, the average wealth of a Romanian went up by 12% from 12,410 dollars to 13,987 dollars. The average wealth in Romania reached the height in 2007, when it got to 17,570 dollars against 11.594 dollars in 2006. The average debt of each adult in Romania went up at the same time, from 1,561 dollars to 2,634 dollars and got to 3,293 dollars in 2011.

In Romania, the average wealth of an adult went up 4 times over the last ten years from 3,840 dollars in 2000 to 17,599 dollars in 2011 according to the Credit Suisse report.

Sursa: http://www.actmedia.eu

Tags: wealth dollars years total according china average million romania trillion level population adult worlds global report household financial people between

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