New Delhi: Global household wealth witnessed a significant fall between mid-2011 and mid-2012, but the outlook for the next five years looks bright as the aggregate wealth is expected to rise by almost 50 percent to USD 330 trillion in the next five years, says a survey.
According to the Credit Suisse Research Institute's third annual Global Wealth Report 2012, from mid-2011 to mid-2012 aggregate global household wealth fell by 5.2 percent in current dollar terms to USD 223 trillion due to the economic uncertainties particularly those affecting the Eurozone.
During the period under consideration, Eurozone members suffered the largest losses, led by France (USD 2.2 trillion), Italy (USD 2.1 trillion), Germany (USD 1.9 trillion) and Spain (USD 870 billion).
Asia Pacific lost about USD 1.4 trillion of household assets, while India shed USD 0.7 trillion, Credit Suisse said.
Moreover there was also a significant rise in household debt, which rose in aggregate by 81 percent from 2000-2012.
However, despite the setbacks in 2007 and more recently, household wealth has grown strongly over the past decade, with the global aggregate doubling from the USD 113 trillion recorded at the start of the millennium.
A similar kind of uptrend was witnessed in the case of India as well, where aggregate wealth more than tripled during 2000 to 2011.
Household wealth is expected to rise by almost 50 percent in the next five years from USD 223 trillion in 2012 to USD 330 trillion in 2017 and the number of millionaires worldwide would reach 46 million in 2017.
India will see a substantial increase (53 percent) in the number of millionaires which will touch 84,000 by 2017.
"There's no question that the economic uncertainties of the past year, particularly those affecting the Eurozone, have cast a huge shadow over household wealth," Credit Suisse Research Institute's Michael O'Sullivan and Richard Kersley said.
Regarding India, the report said, "while wealth has been rising strongly in India, and the ranks of the middle class and wealthy have been swelling, not everyone has shared in this growth and there is still a great deal of poverty".
This is reflected in the fact that almost everyone in India (95 percent) has wealth below USD 10,000, while at the other end, a very small proportion of the population (just 0.3 percent) has a net worth over USD 100,000.
According to the Credit Suisse, India has 237,000 members of the top 1 percent of global wealth holders. There are 1,500 UHNW individuals with wealth over USD 50 million and 700 with more than USD 100 million.
First Published: Wednesday, October 10, 2012, 19:54