The number of dollar\u00a0millionaires\u00a0in South Africa has declined in 2013 thanks to a softer local currency.<\/p>\n
This is according to\u00a0the 2013 Credit Suisse Wealth Report, which found that\u00a0South Africa’s millionaires declined to approximately 43,000, from\u00a047,000 in 2012.<\/p>\n
The report found that global wealth has more than doubled since 2000, reaching a new all-time high of US$241 trillion.<\/p>\n
“We expect global wealth to rise by nearly 40% over the next five years, reaching US$334 trillion by 2018. Emerging markets are responsible for 29% of that growth. China will account for nearly 50% of the increase in emerging economies\u2019 wealth,” the report said.<\/p>\n
Strong economic growth and rising population levels in emerging nations are important drivers of this trend, \u00a0Average wealth per adult has also hit a new peak of US$51,600, but inequality remains high.<\/p>\n
Between 2000 and 2013, emerging markets nearly doubled their share of global wealth from 12% to 21%, thus increasing their share of global wealth by 0.7% each year.<\/p>\n
“We expect that the pace of wealth generation in emerging markets will continue to be greater than that of developed markets, although this difference will be less striking in the next five years.<\/p>\n
“The share of wealth of emerging markets will likely reach 23% by 2018, an increase of 0.5% on average each year. The annual rate of increase is projected to be 9.1% for emerging markets against 6.1% for developed markets,” the authors of the report said.<\/p>\n
South Africa<\/strong><\/p>\n Household wealth per adult in South Africa grew vigorously prior to the global financial crisis, tripling from US$8,400 in the year 2000 to US$25,800 in 2007.<\/p>\n The financial service group pointed out that exchange rate movements had little overall effect during this period.<\/p>\n Since 2007, however, progress has been slower. In constant exchange rate terms, wealth declined a little in 2008, but growth soon recovered and gathered pace in 2012-13. Depreciation of the rand greatly amplified the wealth drop in 2008.<\/p>\n This was\u00a0reversed the following year, but more recent declines in the\u00a0exchange rate have caused wealth per adult in USD terms to\u00a0trend downwards since 2010.<\/p>\n “Unusually for a developing country, household wealth in\u00a0South Africa is largely comprised of financial assets, which\u00a0contribute 71% to the average household portfolio.”<\/p>\n “This\u00a0reflects a vigorous stock market and sophisticated life\u00a0insurance and pension industries, which are key aspects of the\u00a0strong modern sector of the economy,” Credit Suisse said.<\/p>\n Due in part to relatively\u00a0low real estate prices, average real assets of US$7,100 are South Africa, according to the report, is also unusual among developing\u00a0countries in having an official household sector balance sheet,\u00a0which provides a more reliable basis for the wealth composition\u00a0numbers.<\/p>\n “We estimate that 62,000 South\u00a0Africans are members of the top 1% of global wealth holders\u00a0and that 43,000 are USD millionaires. While indicative of\u00a0considerable wealth at the top end, these numbers are down a\u00a0little from last year, reflecting the fall in the exchange rate,”\u00a0Credit Suisse said.<\/p>\n SA home to most millionaires in Africa<\/strong><\/a><\/p>\n
\nnot worth much more than the average level of debt\u00a0(US$5,000).<\/p>\nMore on SA wealth<\/h3>\n