Global household wealth increases by 8.3%: report

In India, wealth per adult stood at an all-time high of $5,760, in constant currency terms

Between mid-2013 and mid-2014, aggregate global household wealth increased 8.3 per cent to $263 trillion in current dollar terms, according to the Credit Suisse Research Institute’s fifth annual Global Wealth Report, released on Tuesday. For the same period, global wealth per adult stood at an all-time high of $56,000, up $3,450 (the most since the financial crisis). In India, wealth per adult, in constant currency terms, stood at an all-time high of $5,760. In dollar terms, however, it was $4,650, owing to the rupee’s depreciation.

Giles Keating, global head (research), private banking and wealth management, Credit Suisse, said: “The fifth annual Credit Suisse Global Wealth Report shows a $20.1-trillion rise in wealth at $263 trillion. North America and Europe stand out this year, with percentage gains exceeding 10 per cent each. Developing economies have lagged due to weaker asset prices and currency pressures.”

On the growth in wealth in India, Toral Munshi, head of India equity research (wealth management), Credit Suisse, said: “Our report indicates a small proportion of the Indian population (0.3 per cent) has a net worth of about $100,000. However, due to India’s large population, this translates into 2.8 million people. Through the last decade, the number of people with net worth between $100,000 and $1 million has doubled from 1.3 million to 2.6 million. India has a significant number of members at the top — 238,000 members of the top one per cent of global wealth holders, a 0.5 per cent share.”

In India, wealth per adult (in rupees) has grown quite steadily, at an average of eight per cent annually between 2000 and 2014. Until the global financial crisis, wealth also rose strongly in dollar terms, from $2,040 in 2000 to $5,100 in 2007. After falling 25 per cent in 2008, it rebounded to $5,400 in 2010, before falling 13 per cent in 2011 due to adverse exchange rate movements. Since then, depreciation of the rupee has continued, albeit at a slower rate.

Data on millionaire trends indicate since 2000, the number of millionaires globally has increased 164 per cent to 34.8 million. The US accounts for 41 per cent of global millionaires. From 2007 to 2009, the number of high net worth individuals in Europe briefly overtook that in the US, only to fall behind again.

A year ago, Japan’s share fell to below 10 per cent; now, it stands at eight per cent.

Globally, there are 128,000 ultra high net worth 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), while 4,300 have assets exceeding $500 million (1,200 in 2000). The US dominates the list, with 63,000 individuals (49 per cent), while Europe has 31,000 (24 per cent); 26,000 (20 per cent) reside in the Asia-Pacific, including China and India.

Today, China has as many ultra high net worth individuals as Europe had in 2001.

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