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According to Knight Frank's Wealth Report Asia is the biggest hub for billionaires, with their number in the region set to rise above 1,000 by 2023, accounting for more than a third of the world’s billionaire population of 2,696.
The report shows that India leads in terms of forecast UHNWI (Ultra-high net-worth individuals)($30m+) growth over the next five years, with an expected rise of 39 percent growth, followed by the Philippines (38%) and China (35%). Of the 59 countries and territories included in the wealth forecasts, eight of the top ten countries are from Asia.
However, it is worth noting that some of these countries are starting from a low base. For example, Romania will have 278 UHNWIs by 2023, while Ukraine will have 485. The Philippines is forecast to have 296 UHNWIs by 2023, less than 2 percent of the ultra-wealthy population of Japan, the biggest Asian wealth hub with 20,570.
Asia Giving Tough Fight to Others
"Equity markets, real estate markets and luxury investments all had a stellar year in 2017. Growth in 2018 has been good in some cases, but has not replicated the levels seen in 2017, and the outlook reflects more mixed conditions ahead," says Oliver Williams, head of GlobalData WealthInsight.
Even so, 2019 marks the point when the number of people globally with $1 million or more in net assets – HNWIs – will exceed 20 million for the first time, according to GlobalData WealthInsight. Some 6.6 million of these individuals will be based in North America, with 5.9 million in Europe and a further 5.8 million in Asia.
Ease of Doing Business Proportionate to Wealth
Williams highlights the link between entrepreneurialism and wealth creation.
"The ease with which a business can be created affects the number of wealthy entrepreneurs in a country and also the spread of wealth," he says.
Asia is the biggest hub for billionaires, with numbers in the region set to rise above 1,000 by 2023, accounting for more than a third of the world’s billionaire population of 2,696. China in particular has seen a sharp rise in the number of billionaires in the last five years, but growth looks set to moderate in the medium term.
William adds, "The easier it is, the more equal wealth is among HNWIs. Countries where building a business is more challenging, whether due to regulation or culture, tend to have a higher concentration of wealth and therefore a disproportionate number of UHNWIs and billionaires."
(Nidhi Singh)
