India and China Lead Global Wealth Growth, Says BCG Report
New Delhi, India – According to a global wealth report by Boston Consulting Group (BCG), India is set to be a major driver of global wealth. In 2023, India generated approximately USD 590 billion in new financial wealth, marking its largest increase ever. By 2028, India is expected to add about USD 730 billion annually to the region’s overall growth.
Yashraj Erande, India Leader Financial Services at BCG, stated, “China and India are positioned to drive wealth creation, having collectively generated USD 588 billion in financial wealth in 2023. India is expected to add about USD 730 billion annually to the overall growth by 2028.”
In 2023, financial wealth in the Asia-Pacific region grew by 5.1 percent, mainly due to a slowdown in China. However, the report predicts a significant increase by 2028, with Asia likely to contribute nearly 30 percent of new financial wealth.
Globally, net wealth grew by 4.3 percent in 2023, rebounding from a 4 percent decline in 2022. This growth was driven by a recovery in the financial market, with financial wealth rising by almost 7 percent after a 4 percent decline in 2022. The report estimates that USD 92 trillion of financial wealth will be created over the next five years.
Generative AI (GenAI) is expected to play a crucial role in the digital transformation of wealth managers. Michael Kahlich, a managing director and partner at BCG, emphasized the need for a clear digital transformation strategy to capitalize on growing global wealth.
In North America and Western Europe, financial wealth bounced back in 2023. North America was among the fastest-growing regions, accounting for over 50 percent of all new financial wealth. Western Europe saw a 4.4 percent increase in financial wealth.
The UAE showed remarkable growth dynamics and is expected to become the sixth-largest booking center by 2028. Hong Kong’s rise as a top global financial hub was stalled, while Singapore is now positioned to challenge Hong Kong in the long term. Switzerland remains the largest booking center worldwide, growing at an average rate of 4.8 percent.
This shift is largely due to a stronger demand for geographic diversification, reflecting a surge in wealth generation in Middle Eastern and Asian markets.
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BCG -: BCG stands for Boston Consulting Group. It is a company that gives advice to other businesses on how to grow and improve.
USD -: USD stands for United States Dollar. It is the money used in the United States and is often used to compare wealth around the world.
Financial Wealth -: Financial wealth means the amount of money and valuable things that people or countries have.
Asia-Pacific region -: The Asia-Pacific region includes countries in Asia and the Pacific Ocean, like India, China, Japan, and Australia.
North America -: North America is a continent that includes countries like the United States, Canada, and Mexico.
Western Europe -: Western Europe is a part of Europe that includes countries like the United Kingdom, France, and Germany.
UAE -: UAE stands for the United Arab Emirates. It is a country in the Middle East known for its rich cities like Dubai and Abu Dhabi.
Booking Center -: A booking center is a place where financial transactions are recorded and managed. It helps in keeping track of money and investments.