The worldâ€™s wealthy are getting poorer and poorer at an alarming rate.
The number of millionaire households in the world dropped from 11 million in 2007 to 9 million last year, a fall of almost 18%, according to The Boston Consulting Group.
The crisis is transforming the global map of the worldâ€™s wealthiest people, with Europe nudging out North America as the richest region, according to a new report by The Boston Consulting Group (BCG).
The report, titled Delivering on the Client Promise: Global Wealth 2009, is being released today (september 15).
Global wealth fell from $104.7 trillion in 2007, measured in assets under management (AuM), to $92.4 trillion in 2008â€”a decline of 11.7 percent. It was the first decline since 2001.1
* The steepest decline was in North America, where wealth plummeted by 21.8 percent last year
* In North America, the share of wealth held in equities fell from 50 percent in 2007 to 38 percent in 2008â€”but the region still had the highest proportion of wealth held in equities
* Europe had $32.7 trillion in AuM, down 5.8 percent from the previous year, followed by North America, with $29.3 trillion in AuM
* Latin America was the only region where wealth increasedâ€”its AuM grew by 3 percent in 2008
The number of millionaire households worldwide fell from 11 million to about 9 millionâ€”a drop of 17.8 percent.
The decline was steepest in North America and Europe, at 22 percent in both regions, although the United States continued to have the most millionaire householdsâ€”nearly 4 million.
* Singapore had the highest concentration of millionaires, with 8.5 percent of the countryâ€™s households owning more than $1 million
* Three of the six densest millionaire populations were in the Middle Eastâ€”in Kuwait, the United Arab Emirates, and Qatar
The crisis also narrowed the gap between the wealthy and nonwealthy. Wealth owned by households with less than $100,000 in AuM increased by 2 percent in 2008. It declined in all other segments. Among households with more than $5 million in AuM, wealth fell by 21.5 percent.
â€œWealth will begin a slow recovery in 2010 but may not reach its precrisis level until 2013,â€ said Peter Damisch, a BCG partner and a coauthor of the report.
â€œWe expect wealth to grow at an average annual rate of about 4 percent from year-end 2008 through 2013.â€ Wealth will grow fastest in Asia-Pacific (excluding Japan) at 9.5 percent per year over the same period, he added.
Source: Boston Consulting Group – Photo: Topnews.in