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Global middle class nears one billion mark Global middle class nears one billion mark
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The global gross financial assets - namely securities, bank deposits, and claims on insurance and pensions - of private households grew by 9.9% in 2013, the highest rate of growth since 2003. This brought total global financial assets up to a new record level of €118 trillion.The global gross financial assets - namely securities, bank deposits, and claims on insurance and pensions - of private households grew by 9.9% in 2013, the highest rate of growth since 2003. This brought total global financial assets up to a new record level of €118 trillion.
Switzerland, the U.S.A. and Belgium are the top-three countries in the world when it comes to net per capita financial assets. Switzerland, the U.S.A. and Belgium are the top-three countries in the world when it comes to net per capita financial assets. Here are the top-20 (in €000s):
This is one of the main findings in the most recent edition of the Allianz Global Wealth Report.This is one of the main findings in the most recent edition of the Allianz Global Wealth Report.
Since the end of 2000, the proportion of global gross financial assets that is attributable to North America and western Europe has fallen by 6%, yet both regions still account for a combined total of almost 70% of the global asset base. In other words, more than four-fifths of global financial assets are still in the hands of private households living in the world’s richer areas, even though these households make up 18.8% of the earth’s population.Since the end of 2000, the proportion of global gross financial assets that is attributable to North America and western Europe has fallen by 6%, yet both regions still account for a combined total of almost 70% of the global asset base. In other words, more than four-fifths of global financial assets are still in the hands of private households living in the world’s richer areas, even though these households make up 18.8% of the earth’s population.
Growth in wealth has been particularly strong in eastern Europe (especially among non-EU members). Over the past 13 years only Asia’s emerging markets have grown more quickly. While Latin America has slowed down - in 2013, asset growth dropped to 6.4%, compared with 13.5% in 2012, and well below the emerging market average (+17.1%).Growth in wealth has been particularly strong in eastern Europe (especially among non-EU members). Over the past 13 years only Asia’s emerging markets have grown more quickly. While Latin America has slowed down - in 2013, asset growth dropped to 6.4%, compared with 13.5% in 2012, and well below the emerging market average (+17.1%).
Global middle class nearing one billion markGlobal middle class nearing one billion mark
One of the most interesting sections in the report is on the growth of a global middle class - which is now nearing the one billion mark. Allianz defines this “wealth middle class” by taking the average global net per capita financial assets (€17,700 in 2013), as a basis, and then encompasses all individuals with assets corresponding to somewhere between 30% and 180% of this figure.One of the most interesting sections in the report is on the growth of a global middle class - which is now nearing the one billion mark. Allianz defines this “wealth middle class” by taking the average global net per capita financial assets (€17,700 in 2013), as a basis, and then encompasses all individuals with assets corresponding to somewhere between 30% and 180% of this figure.
The flows between wealth classes are particularly interesting. The middle class includes both 65 million people that have been demoted from the “wealth upper class” since 2000, and 491 million new entrants.The flows between wealth classes are particularly interesting. The middle class includes both 65 million people that have been demoted from the “wealth upper class” since 2000, and 491 million new entrants.
The share of the population that falls into the wealth middle class in global terms has doubled in Latin America, has almost trebled in eastern Europe and has increased seven-fold in Asia.The share of the population that falls into the wealth middle class in global terms has doubled in Latin America, has almost trebled in eastern Europe and has increased seven-fold in Asia.
While the number of members of the lower wealth class has remained relatively constant at around 3.5 billion people - this, in part at least, is likely to be explained by population growth.While the number of members of the lower wealth class has remained relatively constant at around 3.5 billion people - this, in part at least, is likely to be explained by population growth.
Within each region though there are important difference. The Allianz report includes a series of charts to show how equality (or inequality in several cases) is evolving.Within each region though there are important difference. The Allianz report includes a series of charts to show how equality (or inequality in several cases) is evolving.
In Latin America developments have been by in large positive, with the exception of Colombia, where wealth distribution hasn’t basically changed since 2000. The picture is far more mixed in Asia, with conditions improving in countries like Thailand and Malaysia, not changing or getting worse in already unequal Indonesia and India, and deteriorating in Japan, which was once one of the world’s most equal countries.In Latin America developments have been by in large positive, with the exception of Colombia, where wealth distribution hasn’t basically changed since 2000. The picture is far more mixed in Asia, with conditions improving in countries like Thailand and Malaysia, not changing or getting worse in already unequal Indonesia and India, and deteriorating in Japan, which was once one of the world’s most equal countries.
The wealth matrix in eastern European is quite uniform - with one major exception: Russia, which already had noticeable wealth differences, and these are now widening further.The wealth matrix in eastern European is quite uniform - with one major exception: Russia, which already had noticeable wealth differences, and these are now widening further.
Finally, in terms of Europe, North America and Oceania, the USA remains by far the most elitist among the countries analysed in the report. While wealth distribution, has broadly speaking become more equal, or remains unchanged, in most countries since 2000, it is worth noting how in Greece, Ireland, Italy and France the proportion of assets attributable to the more wealthy decile has increased considerably.Finally, in terms of Europe, North America and Oceania, the USA remains by far the most elitist among the countries analysed in the report. While wealth distribution, has broadly speaking become more equal, or remains unchanged, in most countries since 2000, it is worth noting how in Greece, Ireland, Italy and France the proportion of assets attributable to the more wealthy decile has increased considerably.
The complete Allianz Global Wealth Report can be found here. The sections on growing private debt in Asia, and the growth in real estate assets (and liabilities) in the UK and eastern Europe are particularly recommended.The complete Allianz Global Wealth Report can be found here. The sections on growing private debt in Asia, and the growth in real estate assets (and liabilities) in the UK and eastern Europe are particularly recommended.