The firm expects private wealth in Asia-Pacific to grow to $57trn in 2016, higher than the $56trn projected for North America.
By 2019, Asia-Pacific wealth is forecast to grow to $75trn, which means the region would account for 34% of global wealth by then. This compares to about 29% currently.
“In the years ahead, solid market performance across all regions – combined with robust GDP growth and high savings rates in the new world, especially in Asia-Pacific (excluding Japan) – will continue to drive the expansion of global wealth,” the firm said.
Asia-Pacific expected to hold one-third of global assets in 2019
Fastest growth in 2014
Asia was the fastest growing region in 2014. It recorded a 29% growth in private wealth to $47trn, surpassing the combined wealth of Eastern and Western Europe, the firm said.
Growth was driven by the continued economic expansion of its two largest economies, China and India. Private wealth held in equities rose the most (48%) followed by wealth held in bonds (39%) and in cash and deposits (16%).
Global private financial wealth grew to $164trn in 2014, up by nearly 12%, as shown in the chart below. This was in line with the 12.3% growth witnessed in 2013.
The growth in 2014 was driven by the performance of existing assets but also by the creation of new wealth, the firm said.
Regions such as the Eastern Europe and Latin America grew by double digits, while the Middle East and Africa grew in the high single digits. By contrast, growth rates in Western Europe and North America were in single digits.
Japan lagged somewhat behind. Private wealth in Japan rose just 2% in 2014 to reach $14trn and the firm projects that the country will have grown less than 2% by 2019, the lowest rate globally.