Financial services company Allianz announced the “2022 Global Wealth Report 2022” on the 12th. The report shows that Asia is more affluent than Europe, with Taiwan’s per capita net worth of 138,220 euros (regarding NT$4.31 million) surpassing Japan and Singapore to rank first in Asia and fifth in the world.
The “2022 Global Wealth Report” pointed out that in terms of total financial assets per capita, Taiwan was 164,610 euros (regarding NT$5.13 million), ranking 9th among the 57 countries and regions surveyed, and Asia was second only to Singapore’s 170,000 3,610 Euros (approximately NT$5.41 million). However, when looking at the per capita net assets following deducting liabilities, Taiwan’s per capita net assets amounted to 138,220 euros (regarding NT$4.31 million), officially surpassing Singapore’s 134,150 euros to become the richest in Asia and ranked fifth in the world. After the United States, Switzerland, Denmark and Sweden.
However, the report also counts the “household debt-to-GDP ratio” of various countries. The highest proportion is South Korea, which is as high as 109.1%, and Taiwan and Thailand are tied for second place with 90%. Looking at the Asian region, the average household debt is regarding 60.6%, the only region in the world with much higher debt than 10 years ago.
Deutsche Welle (DW) reported that the latest report compiling data for 2021 analyzes the asset and debt conditions of nearly 60 countries, saying that 2021 may be the last year of substantial economic growth, and 2022 will be a turning point, which may happen globally “The Earth-shattering Transformation”.
The Allianz report, titled “The Last Hurrah”, points out the economic prosperity in 2021. The stock market is driven by monetary policy, and household wealth is also benefiting. Global financial assets for the third consecutive year achieve double-digit growth. In the past 3 years, global private wealth has increased by 60 trillion euros, of which 3 regions have outstanding performance in asset growth, namely Asia (excluding Japan) increased by 11.3%, Eastern Europe increased by 12.2%, North America increased by 12.5%, the main asset growth The impetus comes from the stock market boom, which will contribute regarding two-thirds of wealth growth in 2021.
The report also highlights that Asia is richer than Europe. The total financial assets of private households in mainland China is estimated at 32 trillion euros, accounting for 14% of the world’s total financial assets, while Japan’s 16 trillion euros, China and Japan are second only to the United States’ 103 trillion euros. Asia has overtaken Europe as the second richest region following the United States.
“People haven’t spent much during COVID-19,” said Allianz economist Arne Holzhausen. Although the epidemic has disrupted the pace of life, it has also saved people on vacations, restaurants, and transportation. On the other hand, the state will compensate people for their loss of income, which increases people’s savings.
But the report says 2022 is a turning point. At the beginning of the year, the Russian-Ukrainian war stifled the recovery following the epidemic and turned the world upside down, fueling soaring inflation, and governments of various countries resorted to monetary tightening policies to curb inflation; in addition, the war also deepened energy and food crises. The report argues that monetary tightening is squeezing the economy and markets following the value of household financial assets hit a record high for three years in a row, “in real terms, households will lose 1/10 of their wealth.”
Editor: Qin Yingwen
