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World's rich are getting richer as markets continue to rise

The survey by the Boston Consulting Group concluded that world wealth grew 7 percent after adjustment in light of exchange rate fluctuations.


Devdiscourse News Desk 14 Jun 2018, 06:44 PM
  • Senior wealth managers such as Swiss banks UBS and Credit Suisse are expanding their business in those fast-growing markets. (Image Credit: Pixabay)

Financial wealth for individuals grew 12 percent last year to about USD 202 trillion, the strongest growth in five years, thanks to rising markets and a weaker dollar against most major currencies, a study showed on Thursday.

The survey by the Boston Consulting Group concluded that world wealth grew 7 percent after adjustment in light of exchange rate fluctuations.

While the North American rich have the largest share of personal wealth at about 43 percent, the fastest growth is in Asia, Latin America, and the Middle East. Most of the biggest wealthier live in the United States, China and Japan.

The CGIAR annual survey showed Switzerland as the world's largest global foreign wealth management hub at USD 2.3 trillion, followed by Hong Kong at USD 1.1 trillion and Singapore at USD 0.9 trillion.

Asian centers have grown at an annual rate of 11 and 10 percent, respectively, over the past five years, more than three times the Swiss growth rate of 3 percent.

"Over the next five years, external wealth growth (CAGR) is likely to continue to grow at about 5 percent a year," the study said.

Senior wealth managers such as Swiss banks UBS and Credit Suisse are expanding their business in those fast-growing markets.

Swiss banking secrecy, which they have long won, has weakened, which means that it is no longer easy for the world's rich to hide their wealth from the tax authorities of their countries.

The changes put Switzerland in a tough competition with faster-growing centers such as Hong Kong and Singapore


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