According to HSBC, Asia excluding Japan is rapidly catching up with the United States and assuming that current trends persist, emerging Asia should surpass the United States by 2015.
Asia, including Japan, has more than tripled its financial wealth since 2001 to just over USD 80 trillion, the financial major said.
Country-wise, Japan and China clearly account for the largest chunk in Asia. India, meanwhile, might have had a stronger showing last year if it wasn’t for the slide of its currency over the previous 12 months, HSBC said.
According to the report, China, could add some USD 25 trillion by 2018 and with this it will comfortably exceed Japan’s increase in financial wealth of USD 8 trillion and even America’s of just over USD 16 trillion.
Interestingly, in the next five years, in terms of projected growth of financial wealth, China is likely to be ahead of the United States but is likely to lag behind economies like India, Indonesia, Korea, Malaysia, Thailand, the Philippines and Vietnam.
“Altogether, a shiny future, indeed. That is, as long as nothing disrupts trends in the meantime,” HSBC Economist Frederic Neumann said in a research note.
Clearly, on current trends, the larger economies will enjoy a bigger absolute increase in financial wealth over the coming years, it added.
“…not everyone in Asia is revelling in new-found wealth. Amid all the hype, it’s often forgotten that the majority of people in the region continue to live in poverty,” the report said.
Even if prosperity is, so far, only enjoyed by a small sliver of local populations, the rise of Asian wealth that powers those luxury sales has nevertheless been “stupendous”, HSBC said.