Emerging markets still key growth driver

Median wealth in Australia is the highest of any country in the world, but emerging markets remain the main wealth growth engine, according to the annual Global Wealth Report by the Credit Suisse Research Institute.

Based on figures collected from global household balance sheets, the report found the proportion of Australian adults with total wealth above USD100,000 was eight times the world average, while around half had net worth above USD222,000 – making median wealth in Australia the highest in the world. In addition, between January 2010 and June 2011, Australia’s total wealth increased by USD1.9 trillion, and represented the fifth largest contributor to global wealth growth, the research stated.

Despite these figures, the fastest global wealth growth was seen in emerging markets such as Latin America, Africa and Asia. The Asia-Pacific in particular accounted for 36 per cent of global wealth creation since 2000, and 54 per cent since January 2010, data revealed.

Chief executive of Asia-Pacific Credit Suisse Osama Abbasi said the results reconfirm the current radical reconfiguration of the world’s economic order.

“Emerging markets are important drivers of the global recovery, and remain the key growth engines of global wealth,” he said.

Credit Suisse global head of research for private banking and asset management Giles Keating went on to say the higher debt per adult level in Europe versus Asia – coupled with the much higher growth of Asia compared to Europe – suggests a capacity for mutual collaboration in stemming the tide of debt in the Eurozone.