The “Bric Effect” is an Illusion
Barclays Wealth and the Economist Intelligence Unit looked at how many high net worth people the so-called Bric economies (Brazil, Russia, India and China) will generate in the future. To the surprise of some who have touted the “Bric effect,”
the vast majority of high net worth individuals, defined as those with investments and savings of over $1m, [will] continue to come from developed markets.
Other fun facts:
- More than a quarter, 26 per cent, of the UK’s 26.5m households will be worth more than $1m by 2016
- The average person in the UK is predicted to be worth $332,388 by 2016, compared to $333,989 in the US
- G7 nations will see the number of high net worth individuals double over the next decade
- In the UK, Japan and Germany these numbers will more than triple, while Canada will enjoy an almost six-fold increase
One explanation for this continued disparity may be how conducive a country is to business development. When it comes to favorable busines environments,
the US, Canada, UK, Germany and France are ranked in the top 20, with Japan and Italy just outside. Brazil is 44th, China is 51st, while India stands at 58th and Russia at 59th.