Asia-Pacific fails to lead global HNWI wealth growth first time since 2012

Asia-Pacific fails to lead global HNWI wealth growth first time since 2012

Asia-Pacific fell behind the average growth rate of global HNWI (9 per cent) by expanding just 8 per cent despite robust market performance from a few of its countries

The United States, Japan, Germany, China and France continued as the top five countries by total HNWI population in 2019

The high-net-worth individual (HNWI) population and financial wealth grew by nearly 9 per cent each in 2019. Their wealth had declined by 3 per cent in 2018.  According to World Wealth report 2020 by Capgemini, despite robust market performance from a few of its countries in 2019, the Asia-Pacific (APAC) fell behind the average growth rate of global HNWI (9 per cent) by expanding just 8 per cent. Key Asian markets-Hong Kong, China and Taiwan -- experienced double-digit HNWI population and wealth growth. Though, other major Asian markets - India, South Korea and Singapore -- recorded weak progress which led to sub-par growth in HNWI population and wealth for the entire region. "Anaemic performance in these markets was a result of economic slowdown and weakening local currencies," the report added.

For the first time since 2012, the APAC region did not lead global HNWI wealth growth (or decline in 2018). North America was the driving force in 2019, with an increase in both HNWI population and wealth. It accounted for 39 per cent gain in global HNWI population and 37 per cent of HNWI wealth growth ($2.2 trillion). In the United States, the HNWI population shot up 11 per cent in 2019 compared with 1 per cent in 2018.

Rising trade tensions and geopolitical unrest took a toll on business confidence, investment decisions, and globe trade. However, a notable shift to monetary policy accommodation across regions-and tech sector performance optimism - calmed tensions around financial market sentiment and activity, said the report.

The United States, Japan, Germany, China and France continued as the top five countries by total HNWI population in 2019, with their contribution increasing significantly over 2018. The top four countries accounted for nearly 62 per cent of the HNWI population in 2019 and they were responsible for more than 67 per cent of global HNWI population growth.                  

In Q12020, the impact of COVID-19 wiped out over $18 trillion from the markets globally over the course of February and March 2020, before recovering slightly in April. "Based on the analysis of various market and economic parameters, a quick estimate showed a decline of 6-8 per cent in the global wealth till the end of April versus the end of 2019," it said.

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