Maroc - POPDIARIES.COM - A La Une - 18/Jul 11:22

India & China To Drive New Wealth Creation Globally: Says BCG

According to Boston Consulting Group’s (BCG) global wealth report, India is well-positioned to be a driver of increasing wealth. India saw its biggest gain in financial wealth in history in 2023, bringing in almost $590 billion. Through 2028, India will contribute over $730 billion a year to the region's total growth. India Leader Financial Services, BCG, Yashraj Erande said, "Notably, China and India are positioned to drive wealth creation, having collectively generated $588 billion in financial wealth in 2023. India is expected to add about $730 billion annually to the overall growth by 2028.” He further added, "The financial wealth market has seen an uptick in the last year since its slump in 2022. The trajectory has been fairly well but not as good as it was between 2014-2021. For the wealth creation market to go back to its previous era the condition should continue to be favourable.” The Asia-Pacific region's financial wealth increased by less than 5.1% in 2023, mostly as a result of China's decline in wealth creation. By 2028, the Asian region is expected to generate over 30% of the new financial wealth, according to the assessments, which still predicts a large increase through that year. The survey also noted that after declining by 4% in 2022, global net worth increased by 4.3% in 2023. A large portion of this gain can be due to the financial market's recovery; after declining by 4% in 2022, financial wealth—a subset of global net wealth—rose by about 7%. The research also noted that in 2023, financial wealth increased in Western Europe and North America. North America was one of the fastest-growing areas in the world in 2023, contributing more than 50% of all new financial wealth, supported by reliable stocks markets. In Western Europe, where financial wealth increased by 4.4%, the recovery was not as rapid. “Wealth creation resumed in 2023–but even so, wealth managers cannot afford to stand still. To capitalize on growing global wealth, industry players, among others, will need to set a clear digital transformation strategy and leverage GenAI to manage costs and improve client experience,” said Michael Kahlich, a managing director and partner at BCG and a co-author of the report. The United Arab Emirates (UAE) showed the most impressive growth patterns, according to the research. By 2028, the United Arab Emirates is predicted to overtake the Channel Islands and the Isle of Man as the sixth-largest booking centre in the world. A short but significant reduction in Chinese immigration interrupted Hong Kong's predicted rise to the top spot in the world financial hub rankings. It now seems possible for Singapore to slow down Hong Kong's long-term growth. Switzerland has continued to expand at a rate consistent with an average of 4.8%, making it the largest booking centre globally in terms of absolute dollar wealth. Singapore, the United Arab Emirates, and the United States are expanding more quickly than Switzerland and other European cross-border booking networks, such as the United Kingdom and Luxembourg. The main cause of this change is the increased need for global diversification, which is a reflection of the ongoing surge in wealth creation in Asian and Middle Eastern markets. Read: Once A Med Student, Now Set For Olympics