World's rich just got richer
Friday, 29 June 2007
NEW YORK, June 28(Agencies): The combined wealth of the globe's richest individuals rose more than 11 per cent to a grand total of USD 37.2 trillion last year, according to a report released Wednesday.
The report also found that the expansion of the world's richest class was strongest in both India and Singapore. The rise marks the first double-digit increase in seven years.
Thanks to a strong global economy, 9.5 million people held at least USD 1 million in financial assets, excluding the value of their primary homes, in 2006 up from 8.7 million in 2005, according to the 11th annual World Wealth Report compiled by Merrill Lynch & Co and the consulting firm Capgemini Group.
Emerging economies proved resilient, with continued growth in their high net worth individuals (HNWI) populations and solid investor cash flow to riskier corners of the market.
The largest growth of the HNWI population occurred in Singapore and India, where the increases over 2005 were 21.2 and 20.5 per cent, respectively. The Report suggests that economic growth will slow in 2007 as mature economies grow more moderately.
Real GDP and market capitalisation growth rates - the two primary drivers of wealth generation - accelerated through 2006, which helped to increase the total number of HNWIs around the world as well as the amount of wealth they control.
The realisation of economic gains on par with those of 2003 and 2004 was led by emerging markets that continued to outperform the rest of the world.
China and India, for example, sustained real GDP growth rates of 10.5 percent and 8.8 per cent respectively, in 2006.
Market capitalisations grew rapidly in Europe, Asia-Pacific and Latin America, driven by strong corporate profits, IPO activity and ongoing foreign investment. Although performance varied across the world, almost all indices posted gains. For example, the Dow Jones World Index grew by 16.4 per cent in 2006.
The BRIC nations (Brazil, Russia, India and China) continued to play increasingly important roles in the global economy in 2006.
China and Russia were among the top ten countries with the fastest growing HNWI populations.
China's HNWI population grew by 7.8 per cent and Russia's increased by 15.5 per cent. Brazil and India also showed continued strength based on domestic private consumption and competitive service and manufacturing sectors.
The report also found that the expansion of the world's richest class was strongest in both India and Singapore. The rise marks the first double-digit increase in seven years.
Thanks to a strong global economy, 9.5 million people held at least USD 1 million in financial assets, excluding the value of their primary homes, in 2006 up from 8.7 million in 2005, according to the 11th annual World Wealth Report compiled by Merrill Lynch & Co and the consulting firm Capgemini Group.
Emerging economies proved resilient, with continued growth in their high net worth individuals (HNWI) populations and solid investor cash flow to riskier corners of the market.
The largest growth of the HNWI population occurred in Singapore and India, where the increases over 2005 were 21.2 and 20.5 per cent, respectively. The Report suggests that economic growth will slow in 2007 as mature economies grow more moderately.
Real GDP and market capitalisation growth rates - the two primary drivers of wealth generation - accelerated through 2006, which helped to increase the total number of HNWIs around the world as well as the amount of wealth they control.
The realisation of economic gains on par with those of 2003 and 2004 was led by emerging markets that continued to outperform the rest of the world.
China and India, for example, sustained real GDP growth rates of 10.5 percent and 8.8 per cent respectively, in 2006.
Market capitalisations grew rapidly in Europe, Asia-Pacific and Latin America, driven by strong corporate profits, IPO activity and ongoing foreign investment. Although performance varied across the world, almost all indices posted gains. For example, the Dow Jones World Index grew by 16.4 per cent in 2006.
The BRIC nations (Brazil, Russia, India and China) continued to play increasingly important roles in the global economy in 2006.
China and Russia were among the top ten countries with the fastest growing HNWI populations.
China's HNWI population grew by 7.8 per cent and Russia's increased by 15.5 per cent. Brazil and India also showed continued strength based on domestic private consumption and competitive service and manufacturing sectors.