In 2011 Asia overtook North America as the region with the most High-Net-Worth-Individuals in the world. A HNWI is someone who has at least $1 million of investable assets, not counting primary residence. But last year in 2012 there were more new millionaires in North America than in Asia and we pulled into the lead again according to a study by Capgemini and RBC Wealth Management. Fantabulous! We now have a total of 3,730,000 HNWI on this continent. We’re number 1 And Asia follows closely behind in second place with 3,680,000 HNWIs. Europe is ranked 3rd with 3,400,000.
However Asia is set to retake the top spot again by as early as 2014, the report’s researchers predict. Oh man, it seems to be a neck-and-neck millionaire race between us and Asia. C’mon fellow North Americans. We can’t let them out rich us By the way the Asian countries in this study include Australia. Sorry my Aussies friends, you guys are involved in this matter whether you want to be or not
One of the reasons for the large influx of new Asian millionaires over the last decade is because of high wage inflation in most Asian countries. Right now the Asian region, including Australia, is growing their economy faster than us Westerners. Below are charts showing income growth in China and Australia.
Can you imagine working in China where your wage increases by over 10% EVERY year! Holy habanero sauce! Similar deal in Australia where if you made $1,000 a week in 2012, then chances are you’ll be making over $1,100 a week today! What?! That’s very improbable for the average North American worker. So unfortunately for us the long term trend does not look promising for Canadians and Americans Hopefully we can find new ways to improve our competitiveness and create more millionaires!
Random Useless Fact: The older you get, the better you get. Unless you’re a banana