The Top 1% Now Controls 39% of the Wealth in the World
August 17, 2013
According to a recently released report, the wealthiest 1 percent in the world have control over 39 percent of world’s wealth. According to the report this percentage is likely to grow in coming time. The study carried by Boston Consulting Group’s
Global Wealth Report points out that the total private wealth has grown over by 7.8 percent last year and has touched the mark of $135 trillion.
If the value is calculated in terms of money it comes out to $52.8 trillion and the same is controlled by top 1 percent. This figure is likely to increase in coming times as wealthy people all over will be acquiring more wealth globally.
The study points out that the number of millionaires have grown by 10 percent and the figure has touched 13.8 million. This growth in global wealth will continue for the next five years and growth rate of 4.8 percent will continue unabated during this course.
Millionaires can afford to smile as their wealth growth will be twice over during the next quarter. The study findings point out that millionaires having $5 million of worth will see wealth growth at the rate of 8 percent. Similarly those having assets worth $100 million will have wealth growth at 9.2 percent.
The share of global wealth of those in the $100 million club will grow up to 6.8 percent by 2017. The current growth is at 5.5 percent and this upward swing will help the millionaires accumulate more wealth in the coming years.
This increase in fortunes brings the imperative question of if, what is driving the wealth surge. The answer depends on the location and financial health of the country. For United States and Europe, this surge can be attributed to stocks.
The rise in stock market has benefited the top 5 percent in United States as they are the owners of over 60 percent of individually held stocks.
Economic growth and savings can be listed as major wealth creators in the developing world. Asian countries too have benefited from this surge in stock market as the amount of wealth in equities has also shown an upward swing by around 21.9 percent.