• About us
    • Who we are
    • Mission
  • Contacts
  • English
    • Português (Portuguese (Portugal))
    • Español (Spanish)
    • Français (French)
  • Login
  • Register
Investorpolis
Advertisement
  • Home
  • Investing Series Guide
    • All
    • I. Goal Based Investing
    • II. Compounding & Inflation
    • III. Assets Risks & Returns
    • IV. Efficient Diversification
    • IX. Sustainable Investing and ESG
    • V. The Investor
    • VI. Assets and Investments
    • VII. Index Funds
    • VIII. Successful Investing
    • XI. Other Topics
    Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

    Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

    Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

    Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

    Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

    Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

    Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

    Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

    Simple or Lazy Portfolio Series (DIY): Part 1 – Overview

    Simple or Lazy Portfolio Series (DIY): Part 1 – Overview

    Choosing Mutual Funds Series: Part 5 – Funds availability and currency of investment

    Choosing Mutual Funds Series: Part 5 – Funds availability and currency of investment

    Trending Tags

      • I. Goal Based Investing
      • II. Compounding & Inflation
      • III. Assets Risks & Returns
      • IV. Efficient Diversification
      • V. The Investor
      • VI. Assets and Investments
      • VIII. Successful Investing
      • IX. Sustainable Investing and ESG
      • X. Kits and Tips
      • XI. Other Topics
    • Wealth and Investing
      • All
      • Investing
      • Wealth
      The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

      The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

      The assets allocation in the world reflects the countries economic development and their financial system

      The assets allocation in the world reflects the countries economic development and their financial system

      How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

      How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

      Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

      Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

      Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

      Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

      Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

      Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

      Trending Tags

        • Investing
        • Wealth
      • Retirement & Savings
        • All
        • Retirement
        • Savings
        Retirement Series: How much money do we need to live through retirement?

        Retirement Series: How much money do we need to live through retirement?

        Retirement Series: Part 1 – Overview – A backwards view

        Retirement Series: Part 1 – Overview – A backwards view

        How many years do our public or social pensions last?

        What is the replacement rate of retirement pensions?

        How many years will we live in retirement?

        Planning for a good financial life in retirement

        Trending Tags

          • Retirement
          • Savings
        • Tools
          • All
          • Calculators
          • Publications
          • Sites and apps
          Morningstar Rating for Funds

          Morningstar Rating for Funds

          Morningstar’s European Active/Passive Barometer

          Morningstar’s European Active/Passive Barometer

          Morningstar’s U.S. Active vs. Passive Barometer

          Morningstar’s U.S. Active vs. Passive Barometer

          The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

          The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

          OECD Corporate Governance Factbook 2021

          OECD Corporate Governance Factbook 2021

          G20/OECD Principles of Corporate Governance, 2015

          G20/OECD Principles of Corporate Governance, 2015

          Trending Tags

          • calculators
          • Calculators
          • Publications
          • Sites and apps
        • More
          • All
          • Best of
          Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

          Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

          Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

          Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

          Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

          Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

          Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

          Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

          Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

          Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

          Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

          Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

          Trending Tags

            • Best of
            • Reviews
            • Snapshots
            • Others
          No Result
          View All Result
          • Home
          • Investing Series Guide
            • All
            • I. Goal Based Investing
            • II. Compounding & Inflation
            • III. Assets Risks & Returns
            • IV. Efficient Diversification
            • IX. Sustainable Investing and ESG
            • V. The Investor
            • VI. Assets and Investments
            • VII. Index Funds
            • VIII. Successful Investing
            • XI. Other Topics
            Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

            Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

            Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

            Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

            Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

            Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

            Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

            Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

            Simple or Lazy Portfolio Series (DIY): Part 1 – Overview

            Simple or Lazy Portfolio Series (DIY): Part 1 – Overview

            Choosing Mutual Funds Series: Part 5 – Funds availability and currency of investment

            Choosing Mutual Funds Series: Part 5 – Funds availability and currency of investment

            Trending Tags

              • I. Goal Based Investing
              • II. Compounding & Inflation
              • III. Assets Risks & Returns
              • IV. Efficient Diversification
              • V. The Investor
              • VI. Assets and Investments
              • VIII. Successful Investing
              • IX. Sustainable Investing and ESG
              • X. Kits and Tips
              • XI. Other Topics
            • Wealth and Investing
              • All
              • Investing
              • Wealth
              The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

              The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

              The assets allocation in the world reflects the countries economic development and their financial system

              The assets allocation in the world reflects the countries economic development and their financial system

              How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

              How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

              Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

              Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

              Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

              Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

              Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

              Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

              Trending Tags

                • Investing
                • Wealth
              • Retirement & Savings
                • All
                • Retirement
                • Savings
                Retirement Series: How much money do we need to live through retirement?

                Retirement Series: How much money do we need to live through retirement?

                Retirement Series: Part 1 – Overview – A backwards view

                Retirement Series: Part 1 – Overview – A backwards view

                How many years do our public or social pensions last?

                What is the replacement rate of retirement pensions?

                How many years will we live in retirement?

                Planning for a good financial life in retirement

                Trending Tags

                  • Retirement
                  • Savings
                • Tools
                  • All
                  • Calculators
                  • Publications
                  • Sites and apps
                  Morningstar Rating for Funds

                  Morningstar Rating for Funds

                  Morningstar’s European Active/Passive Barometer

                  Morningstar’s European Active/Passive Barometer

                  Morningstar’s U.S. Active vs. Passive Barometer

                  Morningstar’s U.S. Active vs. Passive Barometer

                  The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

                  The Power of Dividends: Past, Present, and Future, Hartford Funds, 2021

                  OECD Corporate Governance Factbook 2021

                  OECD Corporate Governance Factbook 2021

                  G20/OECD Principles of Corporate Governance, 2015

                  G20/OECD Principles of Corporate Governance, 2015

                  Trending Tags

                  • calculators
                  • Calculators
                  • Publications
                  • Sites and apps
                • More
                  • All
                  • Best of
                  Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

                  Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

                  Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

                  Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

                  Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

                  Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

                  Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

                  Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

                  Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

                  Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

                  Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

                  Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

                  Trending Tags

                    • Best of
                    • Reviews
                    • Snapshots
                    • Others
                  No Result
                  View All Result
                  Investorpolis
                  No Result
                  View All Result
                  Home Wealth and Investing Wealth

                  The convergence of financial wealth of emerging economies over the past 20 years

                  23 de June, 2020
                  in Wealth, Wealth and Investing
                  Reading Time: 7 mins read
                  0 0
                  0
                  Share on FacebookShare on Twitter

                  The last two decades have been of strong growth and convergence of financial wealth in Asia, but also in other emerging economies in relation to advanced economies

                  Over the past two decades, there has been a huge convergence of global wealth between poor and rich regions, with Asia ex-Japan, Eastern Europe and Latin America growing by almost 200%

                  It was in China and India that the average wealth grew the most between 2000 and 2017, at an annual rate that is twice that of the world

                  In Asia, 80% of gross financial assets are focused on Japan and China

                  Japan is still the economy with the highest value of net financial assets per capita, but Taiwan and Singapore are close

                  In terms of gross financial assets per capita, Singapore already exceeds even Japan

                  Taiwan leads in terms of gross wealth as a percentage of GDP with more than 500%

                  Japan, India, and Indonesia are among the most conservative countries in terms of financial investments in the region, and Asian tigers, the most diversified

                  The capital market in Indonesia has appreciated more than 800% and India’s more than 600% in the last decade

                  Over the past two decades, there has been a huge convergence of global wealth between poor and rich regions, with Asia ex-Japan, Eastern Europe and Latin America growing by almost 200%

                  Between 2007 and 2018, all emerging markets, Eastern Europe, Asia ex-Japan and Latin America experienced extremely high net financial asset growth per capita of around 200%.

                  In Eastern Europe, per capita financial assets grew at 10.3% per year in the same period, mainly driven by a reduction in debt levels.

                  Net financial assets per capita in Asia ex-Japan have grown at 10.2% per year since 2008, but last year net wealth in the region decreased by 6.7% mainly due to a 10.6% reduction in household wealth in China.

                  Latin America recorded a growth in net financial wealth per capita of 10.1% in that decade.

                  This growth pace in net financial wealth of emerging economies has surpassed by far that of advanced economies, which in the last 10 years has only grown by between 10% in Japan, 25% in Western Europe and 40% to 50% in Oceania and North America.

                  We had growth rates of more than 10% per year for emerging economies and between less than 1% and no more than 2.5% for advanced economies.

                  It was in China and India that the average wealth grew the most between 2000 and 2017, at an annual rate that is twice that of the world

                  The following two graphs show the growth of average wealth in fast-growing countries and major regions between 2000 and 2017, in terms of current and constant exchange rates:

                  The growth rate of average wealth in China at current rates in these 17 years was above 8% per year, well above North America’s 6% per year, India’s 4% per year of 1% per year in Europe and just over 3.5% per year in the World.

                  At constant rates terms, the wealth growth in the period was higher in India at 10% per year, followed by China with 8% per year and with Latin America almost on par, maintaining the 6% per year of North America, raising Europe to 3.8% per year and the World to almost 5.5% per year.

                  In Asia, 80% of gross financial assets are focused on Japan and China

                  In 2017, China already accounted for 50% of Asia’s gross financial assets, Japan 29%, South Korea 6%, Taiwan 5 2017, China already accounted for 50% of Asia’s gross financial assets, Japan 29%, South Korea 6%, Taiwan 5% and India 5%.

                  The progress of the Chinese economy is remarkable. In 2005 it had just over 10% of Asian gross financial wealth and grew fivefold to 50% in 2017.

                  As we have seen, Japan barely grows in terms of gross wealth, so it sees its weight in the region’s wealth falling from almost 80% in 2005 to 29% in 2017.

                  These aggregated wealth values per country are influenced not only by their economic dynamics but also by demographic factors, namely the size of the population and its degree of ageing.

                  Japan is still the economy with the highest value of net financial assets per capita, but Taiwan and Singapore are close

                  Japan still holds the lead in terms of net financial wealth per capita, reaching $97,000, but is soon followed by Taiwan with $92,000 and Singapore with $90,000. 

                  In terms of gross financial assets per capita, Singapore already exceeds even Japan

                  Gross financial assets per capita reflect the level of economic development and access to financial services of a large part of the population.

                  Singapore already surpasses Japan in terms of gross financial wealth per capita, with a value of $126,000 versus $112,000. Taiwan follows with $108,000.

                  Asian average is very low, at $14,760, less than half the global average of $33,160, much due to the value of financial wealth in India and Indonesia which are only $1,460 and $1,160, respectively.

                  Taiwan leads in terms of gross wealth as a percentage of GDP with more than 500%

                  Typically, the higher the GDP per capita, the higher the financial wealth per capita.

                  Taiwan leads the region in terms of gross financial wealth as a percentage of GDP with 524%, followed by Japan with 356% and Singapore with 269%, compared with 272% of the world average.

                  At the opposite end we have India with 89% and Indonesia with 37%.

                  Japan, India, and Indonesia are among the most conservative countries in terms of financial investments in the region, and Asian tigers, the most diversified

                  Indonesia, India, and Japan are the countries with the highest percentage of allocation to deposits.

                  The same is true of China, although it does not translate from the data. The investment in securities in China is mainly in banking products called wealth management products, whose degree of opacity has been worrying and making the Chinese authorities act.

                  The conservatism in these countries is due to a historic poor performance of capital markets in Japan, the still incipient degree of development of the capital market and capital control regime in China and the level of poverty in India and Indonesia.

                  The 4 Asian tigers, Malaysia, Singapore, Taiwan, and South Korea have fewer deposits and invest more in bonds, insurance and pensions.

                  The capital market in Indonesia has appreciated more than 800% and India’s more than 600% in the last decade

                  In the last 17 years emerging markets have performed exceptionally well. Since the beginning of the new millennium, Indonesia’s stock market index has risen 800%, India’s 600%, and Thailand’s 250%, while major Chinese, Malaysian and Korean stock indices have risen 100%.

                  Markets in Japan, Taiwan and Singapore performed more modestly. 

                  Too bad that households in India only held 12.6% of the financial assets invested directly in bonds, and Indonesian households 15%, which made them little benefit from those strong valuations.

                  Previous Post

                  What influences the investment of households in the stock markets

                  Next Post

                  Investor biases: Herding or herd instinct

                  Investadmin

                  Investadmin

                  Related Posts

                  The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.
                  Investing

                  The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

                  23 de March, 2023
                  The assets allocation in the world reflects the countries economic development and their financial system
                  Investing

                  The assets allocation in the world reflects the countries economic development and their financial system

                  23 de March, 2023
                  How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management
                  Investing

                  How Women invest: Part 2 – The results are equivalent to those of men, but with significant differences in investment management

                  2 de March, 2023
                  Outlook 2023: Part 5 – 2023 will be a transitional year with two halves
                  Investing

                  Outlook 2023: Part 5 – 2023 will be a transitional year with two halves

                  17 de February, 2023
                  Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever
                  Investing

                  Outlook 2023: Part 4 – In changing economic cycle, policies, and market sentiment, valuation matters become more than ever

                  17 de February, 2023
                  Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything
                  Investing

                  Outlook 2023: Part 3 – 2022 was bad for investments, but was not the same for everything

                  16 de February, 2023
                  Next Post

                  Investor biases: Herding or herd instinct

                  Leave a Reply

                  Your email address will not be published. Required fields are marked *

                  Trending

                  Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

                  Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

                  27 de March, 2023
                  Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

                  Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

                  27 de March, 2023
                  Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

                  Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

                  27 de March, 2023
                  The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

                  The world’s best investors use different strategies, but they have in common the patience of a long-term perspective.

                  23 de March, 2023
                  Investorpolis

                  We developed this blog because we believe that only a small learning effort is needed to make a big change in the decisions and results of our investments and financial assets.

                  Main categories

                  • Investing Series Guide
                  • Wealth and Investing
                  • Retirement & Savings
                  • Tools
                  • More

                  Newsletter

                  Sign to our mailing list to receive updates direct to your inbox!

                  *We don’t spam

                  • Privacy Policy
                  • Cookie Policy
                  • Contacts

                  © 2021 - Investorpolis / Powered by Delta Soluções

                  • pt-pt Português
                  • fr Français
                  • es Español
                  • en English
                  • Home
                  • Investing Series Guide
                    • I. Goal Based Investing
                    • II. Compounding & Inflation
                    • III. Assets Risks & Returns
                    • IV. Efficient Diversification
                    • IX. Sustainable Investing and ESG
                    • V. The Investor
                    • VI. Assets and Investments
                    • VII. Index Funds
                    • VIII. Successful Investing
                    • X. Kits and Tips
                    • XI. Other Topics
                  • Retirement & Savings
                    • Retirement
                    • Savings
                  • Wealth and Investing
                    • Investing
                    • Wealth
                  • Tools
                    • Calculators
                    • Publications
                    • Sites and apps
                  • More
                    • Best of
                    • Reviews
                    • Snapshots
                    • Others
                  • About us
                    • Who we are
                    • Mission
                  • Login
                  • Sign Up
                  • Cart

                  © 2021 - Investorpolis / Powered by Delta Soluções

                  Welcome Back!

                  Login to your account below

                  Forgotten Password? Sign Up

                  Create New Account!

                  Fill the forms bellow to register

                  All fields are required. Log In

                  Retrieve your password

                  Please enter your username or email address to reset your password.

                  Log In
                  We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
                  Cookie configurationCookie PolicyAcceptReject
                  Manage consent

                  Privacy Overview

                  This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
                  Advertisement
                  Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
                  Analytics
                  Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
                  Functional
                  Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
                  Necessary
                  Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
                  Others
                  Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
                  Performance
                  Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
                  SAVE & ACCEPT

                  Add New Playlist

                  Are you sure want to unlock this post?
                  Unlock left : 0
                  Are you sure want to cancel subscription?