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China: The Land Of The Ultra-Rich

Louis

The momentum of the global economy since the start of 2017 has been enough for Goldman Sachs’ to describe 2018 “as good as it gets”, and while the super-rich population is still rising, Asia is the hottest growth spot, and China is leading the mega-wealth push.

Over the next five years, China will see its ultra-wealthy population more than double, according to Wealth-X.

(Click to enlarge)

Source: Knight Frank

Between 2012 and 2017, according to Knight Frank’s interpretation of data, the number of people with $50 million or more in net assets rose by 31 percent in North America, 37 percent in Asia-Pacific and only 10 percent in Europe.

In Latin America and the Caribbean, the ultra-wealthy population declined by 22 percent, and in Russia and the Commonwealth of Independent States (CIS) region, they lost 37 percent.

But in 2017, things started to change a bit. Russia/CIS gained back 26 percent, with Russia coming out of a recession.

And while North America, home to some 35 percent of the world’s ultra-wealthy, is still the biggest, China is threatening to close in—fast. Europe was second until last year, when it lost its spot to Asia.

Last year saw a 15-percent rise in Asia’s ultra-rich population, but it’s the next five years that will be game-changing.  

For 2017-2022, Knight Frank consultants see a 104-percent rise in China’s ultra-wealthy population, with second place going to the Philippines, which is expected to see an 84-percent increase. Related: Markets Slide Sideways As Trade War Fears Linger

India is third, with a 71-percent expected rise, followed by Indonesia with 66 percent, Malaysia with 65 percent and Japan with 51 percent.

In that same time period, the U.S. is expected to see a 38-percent rise in its ultra-wealthy population, assuming current economic forecasts.

“We have been experiencing ‘Goldilocks’ economic conditions: not too hot, and not too cold. These make it easier to do business, provide a good environment to raise capital and, above all, encourage entrepreneurialism—the key to wealth creation,” noted Vincent White, managing director of Wealth-X.

Beyond the next five years, North America’s top slot seems secure, but Europe is left behind:

(Click to enlarge)

Source: Mansion Global

The ultra-rich hold their wealth primarily in private and public investments, with an estimated 9 percent (around $2.7 trillion) in real estate and luxury assets, as of the end of 2016.

And as they grow, they spend, with Business Insider recently detailing the $234 billion the world’s richest spend on luxury goods every year.

• $45 billion a year on travel and hospitality

• $40 billion a year on cars

• $25 billion a year on jewelry and watches

• $25 billion a year on art

• $23 billion a year on private aviation

• $22 billion a year on yachts

• $15 billion a year on apparel

• $12 billion a year on ‘accessories’

• $8 billion a year on home goods

• $8 billion a year on wine and spirits

• $7 billion a year on food

• $4 billion a year on beauty

By Fred Dunkley for Safehaven.com

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