The Asia-Pacific region led by China is quickly catching up to the West in terms of wealth. With the accelerating pace of innovation in mobile communications and fintech, the region is expected to not only leapfrog the US Europe by 2019, but also integrate millions of unbanked people into the global economy.
The Asia Pacific region, led by China, is growing fast. In 2014, the sum total of worldwide assets reached a record high of US$164.3 trillion. As central banks have come to the rescue, asset prices have risen to record highs globally.
Global growth overall grew by 11.9% (see chart below). Asia-Pacific, excluding Japan is the fastest growing region with China and India accounting for 25% and 44% of the growth, respectively.
Moreover, developing economies are accounting for 66% of all new wealth creation, while the US Europe is only 33%. This translates into 62% of new millionaires coming from the Asia-Pacific region.
Existing wealth has grown much richer in the developed economies, resulting in the exclusion of other classes caused by monetary policies designed to stimulate the economies. What’s unique about this great wealth transfer east is that this region has the highest share