According to a recent report issued by the Credit Suisse Research Institute, world’s wealth reached $250 trillion this year, which is a little less than in 2014 due to strong currencies and low crude price.
But although it mildly shrank, global wealth is set to increase in the coming years. Household wealth is now larger in the U.S. and China. But most of the world’s wealth in concentrated in North America and Europe.
Yet, global wealth trends in developing countries were impressive in the last years. China, for instance, saw its wealth grow fivefold since the beginning of the century. The country currently has the largest middle-class on the planet but it is also the most populated nation. About 10 percent of world’s wealth is in the hands of the Chinese.
It is the first time China’s middle-class outnumbered the U.S.’ middle class. There are 109 million members of the middle class in China, and only 92 million in the U.S. For the rest of the world, about 664 million people make up the world’s middle class or 14 percent of all adult population.
Credit Suisse investigators also reported that although middle-class’ wealth lagged behind the wealthiest, middle class will continue to grow and bring technological and societal changes in the countries of the world.
“[…] historically, the middle class has acted as an agent of stability and prosperity,”
said Credit Suisse chief executive Tidjane Thiam
Unfortunately, the gap between the rich and the poor continued to grow this year. Researchers believe that an increase in commodity prices and the amount of financial assets boosted the wealth of the world’s richest people since 2014.
The world’s top 100 richest now hold more than 50 percent of global wealth with the world’s ten richest people holding 87.7 percent of that share. You are considered to be part of the wealthiest part of world’s population if you own $3,201 once debts and taxes are subtracted. If you have $68,800 you are a member of the planet’s wealthiest ten percent. And if you own $759,900 you are considered a member of the famous 1 percent.
According to forecasts, world’s wealth will continue to grow by 6.5 percent every year. In five years’ time, it is expected to hit 345 trillion, which is 38 percent more than today’s global wealth.
About one-third of global wealth is and will remain concentrated in the U.S. But emerging economies may hold 19 percent of global wealth by 2020. Chinese and Indian economies are expected to experience tremendous growth.
Image Source: Pixabay
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