World's richest get even richer
Saturday, September 6, 2008
THE old saying holds true: The rich do get richer.
Even as world financial markets broke down last year, personal wealth around the world grew 5 per cent to US$109.5 trillion, according to a global wealth report released on Thursday by Boston Consulting Group.
It was the sixth consecutive year of expanding wealth. The fastest growth was among households in developing regions, such as China and the Gulf States and among families who were already rich.
That wealth also is increasingly concentrated among the richest.
The top 1 per cent of all households owned 35 per cent of the world's wealth last year. Meanwhile, the top 0.001 per cent, ultra-rich households holding at least US$5 million in assets, commanded US$21 trillion a fifth of the world's wealth.
The planet also continues to mint new millionaires rapidly. The biggest jumps in 2007 came from emerging countries in Asia and Latin America. Overall, the number of millionaire households grew 11 per cent to 10.7 million last year.
BCG notes that, while the rich are still rich, they have been making some adjustments as a result of the financial crisis.
This year, assets are being shifted to more conservative investments, more money is being kept onshore in home markets and some individuals have curtailed new investment.
Yet BCG cautioned the outlook for wealth markets is dimmed by the current financial crisis.Reuters
Even as world financial markets broke down last year, personal wealth around the world grew 5 per cent to US$109.5 trillion, according to a global wealth report released on Thursday by Boston Consulting Group.
It was the sixth consecutive year of expanding wealth. The fastest growth was among households in developing regions, such as China and the Gulf States and among families who were already rich.
That wealth also is increasingly concentrated among the richest.
The top 1 per cent of all households owned 35 per cent of the world's wealth last year. Meanwhile, the top 0.001 per cent, ultra-rich households holding at least US$5 million in assets, commanded US$21 trillion a fifth of the world's wealth.
The planet also continues to mint new millionaires rapidly. The biggest jumps in 2007 came from emerging countries in Asia and Latin America. Overall, the number of millionaire households grew 11 per cent to 10.7 million last year.
BCG notes that, while the rich are still rich, they have been making some adjustments as a result of the financial crisis.
This year, assets are being shifted to more conservative investments, more money is being kept onshore in home markets and some individuals have curtailed new investment.
Yet BCG cautioned the outlook for wealth markets is dimmed by the current financial crisis.Reuters
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