The spending by rich had increased by 40% in 2015 compared to a year earlier even as the year was marked as one with an overall decline in global wealth for the first time since the financial collapse in 2008.
But the rich have proved that as wealth falls, spending rises.
According to Knight Frank's ‘2016 The Wealth Report the number of individuals with $30 million or more in net worth, not including a principal residence declined by 3% last year globally.
This fall was for the first time since the global financial crisis where the wealth gap widened even further as growth of middle-class net worth slowed. Half of the household wealth is now owned by the richest 1%.
As a result of other countries' currency depreciation against the U.S. dollar in the 12 months from June 2014 to the end of June 2015, the total wealth dropped $12.4 trillion to $250.1 trillion, said the Credit Suisse Global Wealth Report.
With a rise of $4.6 trillion in household wealth, the U.S. led the world in wealth gains. That marked 7 successive years of gains. China gained $1.5 trillion despite a precipitous stock market decline in that country.
Lackluster performance in 2015, along with lower oil prices, helped slow the growth just as the bull stock market in the years following the recession contributed to the wealth gains by individuals.
However the rich increased their spending last year on super-yachts exceeding 78 feet in length despite the slowdown, the report found. Shifting from the Mediterranean and Caribbean to places such as Asia and Antarctica, the boating destinations also became more exotic.
It is also expected that the spending on luxury automobiles and private jets will also increase over the next decade to meet the demands of the ultra-rich. While being s status symbol, collectibles, in particular, are expected to be a safe haven for investing.
There were only 34 countries that saw positive growth in the number of rich individuals in 2015, compared to previous years among the total of 91 countries that the Knight Frank studies. Along with South Africa, down 23%, and Singapore, down 20%, Canada was among the countries with the biggest decline, at 24%. The U.S. was down just 2%.
Knight Frank predicts slower growth of 41% in the investment returns over the next 10 years even as it has been largely responsible for a whopping 61% increase in global wealth since 2005.
Emerging economies are forecast to continue the trend of growth for the coming decade as they have been showing the fastest growth over the past decade. The population of individuals with a wealth of more than $30 million in Asia is expected to be 27,000 even as North America will maintain its status as No. 1 with the largest population of such wealthy individuals and is projected to increase the number by 21,000 individuals by 2025.
(Source:www.cnbc.com)
But the rich have proved that as wealth falls, spending rises.
According to Knight Frank's ‘2016 The Wealth Report the number of individuals with $30 million or more in net worth, not including a principal residence declined by 3% last year globally.
This fall was for the first time since the global financial crisis where the wealth gap widened even further as growth of middle-class net worth slowed. Half of the household wealth is now owned by the richest 1%.
As a result of other countries' currency depreciation against the U.S. dollar in the 12 months from June 2014 to the end of June 2015, the total wealth dropped $12.4 trillion to $250.1 trillion, said the Credit Suisse Global Wealth Report.
With a rise of $4.6 trillion in household wealth, the U.S. led the world in wealth gains. That marked 7 successive years of gains. China gained $1.5 trillion despite a precipitous stock market decline in that country.
Lackluster performance in 2015, along with lower oil prices, helped slow the growth just as the bull stock market in the years following the recession contributed to the wealth gains by individuals.
However the rich increased their spending last year on super-yachts exceeding 78 feet in length despite the slowdown, the report found. Shifting from the Mediterranean and Caribbean to places such as Asia and Antarctica, the boating destinations also became more exotic.
It is also expected that the spending on luxury automobiles and private jets will also increase over the next decade to meet the demands of the ultra-rich. While being s status symbol, collectibles, in particular, are expected to be a safe haven for investing.
There were only 34 countries that saw positive growth in the number of rich individuals in 2015, compared to previous years among the total of 91 countries that the Knight Frank studies. Along with South Africa, down 23%, and Singapore, down 20%, Canada was among the countries with the biggest decline, at 24%. The U.S. was down just 2%.
Knight Frank predicts slower growth of 41% in the investment returns over the next 10 years even as it has been largely responsible for a whopping 61% increase in global wealth since 2005.
Emerging economies are forecast to continue the trend of growth for the coming decade as they have been showing the fastest growth over the past decade. The population of individuals with a wealth of more than $30 million in Asia is expected to be 27,000 even as North America will maintain its status as No. 1 with the largest population of such wealthy individuals and is projected to increase the number by 21,000 individuals by 2025.
(Source:www.cnbc.com)