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India, China to grow wealthier faster than other nations

India, China to grow wealthier faster than other nations
PTI
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First Published: Fri, Jun 11 2010. 12 39 PM IST
Updated: Fri, Jun 11 2010. 12 39 PM IST
Boston: Emerging markets like India and China will see faster wealth creation in the future, says a report according to which global wealth grew a “remarkable” 11.5% in 2009 to $111.5 trillion.
Global management consulting firm Boston Consulting Group (BCG) in its 10th annual Global Wealth report estimated that China and India will generate triple the growth of other countries from 2009 end to 2014.
The recovery in wealth, which offset the 10% dip in global assets under management in 2008, was driven by resurgent financial markets and increased savings, it said.
BCG projected that global wealth would grow at an average annual rate of nearly 6% from 2009 year-end through 2014, much slower than the sharp recovery last year but still higher than the 4.8% annual growth rate from 2004 year-end through 2009.
“There’s no doubt that wealth will continue to grow faster in emerging markets, fueled by strong economic growth,” BCG Partner and Co-Author of the report Tjun Tang said.
Asia-Pacific, excluding Japan, is expected to grow at nearly twice the global rate, raising its share of global wealth from 15% in 2009 to almost 20% in 2014.
However, the rebound in wealth does not mean “a return to business as usual,” BCG said, adding that client trust and wealth manager performance are still lower than they were before the global economic crisis.
North America posted the largest absolute gain in wealth at $4.6 trillion (15%), but the largest percentage gain, and the second largest in absolute terms, occurred in Asia-Pacific (excluding Japan), where wealth increased by 22%, or $3.1 trillion.
Europe remained the wealthiest region. Its $37.1 trillion in AUM represented one-third of the world’s wealth.
The number of millionaire households across the world rose by about 14% in 2009 to 11.2 million.
The US had by far the most millionaire households (4.7 million) followed by Japan, China, the United Kingdom, and Germany.
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First Published: Fri, Jun 11 2010. 12 39 PM IST