We came across the Asia pacific wealth report published by Capgemini and Merrill Lynch which reports the recent past and future performance in the growth /decline of the High Net worth Individuals (HNWI)

This report examines the effects of the crisis on Asia-Pacific’s HNWIs and  their wealth, but also argues that the region and its HNWIs should recover at a faster pace than the world’s wealthiest  nations. In fact, we believe the Asia-Pacific region, especially China and India, will be an important driver of global economic growth in the years ahead, likely elevating the region’s HNWIs to a more dominant position among the ranks of the world’s wealthy.

HNI  post 2008

The HNWI Population Contracted Most in Hong Kong and India The HNWI populations in Hong Kong and India experienced the largest percentage declines in the region. This was largely due to factors such as a higher ratio of market capitalization to gross domestic product (GDP), the asset-allocation preferences of HNWIs, and the distribution of HNWI wealth in those countries.

India’s HNWI population shrank 31.6% to 84k, the second largest percentage decline in the world, after posting the fastest rate of growth (22.7%) in 2007. India, still an emerging economy, suffered declining global demand for its goods and services causing GDP to slow, and a hefty drop in market capitalization (-64.1%) in 2008. At the end of 2008, HNWI wealth was down 29.0% to US$310 billion, with the largest losses among those in the $1m-$5m wealth band (-31.8%).

HNI post 2009

Markets such as China and India are forecast to grow faster than their peers within the region and faster even than markets in Latin America, which have themselves been known as engines of growth.

The Indian economy is still one of the fastest growing in the world despite the crisis, with recent figures showing relatively better real GDP growth for the 20085 financial year and better-than-expected results for the second quarter of 20096.

The Asia-Pacific region is likely to be experienced by China and India, which is forecast to grow at a compound annual growth rate of 9.7% and 7.9% respectively during 2009-2013.

The HNWI population in India is also expected to be more than triple the size in 2018 that it was in 200866, with emergent wealth playing a key role.

Source - Asia pacific wealth report published by Capgemini and Merrill Lynch

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