China would be welcoming new millionaires at more than three times the rate the United States is doing at present according to the 2018 Global Wealth Report from Credit Suisse Research Institute released on Oct. 17.
In comparison, the United States would have 20.5 million new millionaires over the next five years.
The report highlighted that one notable finding this year is that China is closing the wealth gap with the United States at an accelerated speed. Credit Suisse said the Asian superpower is now officially the number two economy worldwide, second to the United States but with only a minute gap.
The report said the future where China becomes wealthier than the United States has now become indisputable.
The country's total wealth has increased by 1,300 percent to $51.9 trillion in the last ten years. It has doubled the rate of wealth production of any other country in the world.
Another notable insight from the report is that Credit Suisse believed the ongoing China-US trade war will not have a significant impact on both of the country's economy. Both of these nations have a positive wealth outlook unto the future.
Elsewhere, the world would welcome new millionaires over the next five years. The number of wealthy people is predicted to reach an all-time high of 55 million within a period of five years. Remarkably, even emerging markets could contribute to this number by a third even if they currently contribute 21 percent of the overall global wealth.
Overall, global wealth increased by an average of 4.6 percent to $317 trillion during the 12 months to mid-2018 and increased by $14 trillion last year. Credit Suisse is predicting that global wealth will continue to rise by about 26 percent in the next five years, reaching approximately $399 trillion by 2023.
North America posted the largest increase in wealth growth in household per adult. The region attained a 5.5 percent increase of $391,690 in the 12 months through mid-year.
The Asia Pacific has also contributed to the global high net worth with China, Japan, Australia, Korea, and Taiwan collectively welcoming more than 8.8 million millionaires. The region has also brought in 3 percent or $114 trillion of the overall global wealth.
The report also found that the number of adults with a wealth of less than $10,000 has decreased since 2000. In comparison, 80 percent of adults worldwide belonged to the demographic of people with less than $10,000 at the beginning of the century. Credit Suisse is projecting that more adults will continue to possess a wealth of more than $10,000 by 2023.
