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By Indo Asian News Service - BEIJING
11th October 2012 03:09 PM
China will overtake Japan as the world's second-wealthiest nation after the US in the next five years, says a global report on personal wealth.
According to the "Global Wealth Report 2012", the US will be the world's richest nation with $89 trillion of household net worth, the China Daily said Thursday.
The study carried out by the Credit Suisse Research Institute said there were 964,000 millionaires in China by mid-2012, and the number was expected to almost double to 1.9 million by 2017, driven by the rapid development of the private sector.
It defined "household wealth" as the value of financial assets and non-financial assets minus total household debts.
By mid-2012, China's total household wealth jumped $562 billion to $20 trillion.
China is expected to add another $18 trillion in family wealth in the next five years, the report said.
The projected $38 trillion total will surpass Japan's $35 trillion, and make China the second wealthiest country by 2017.
"Due to a high savings rate and relatively well-developed financial institutions, a high proportion of Chinese household assets are in financial form compared with other major developing countries," the report said.
"At the same time, privatised housing, new construction and rural land are very important forms of wealth in China," it said.
However, "wealth inequality" was rising in the country, with increase in wealth of successful entrepreneurs, professionals and investors.
Copyright © 2012 The New Indian Express. All rights reserved.
Comments(2)
The US and Chinese economies are based on 2 different economic models, Indian leaders would do well to study both these models, and contextualize it to the needs of the Indian economic model. Modi has correctly visited China, Japan and some other countries. He must now visit mineral and oil rich Latin America and Africa. As for those nations that did seek to isolate Modi , let the leaders of these nations first visit Gujarat Then Modi can consider visiting them A wise leader partly forgives but never forgets
Posted by raj at 10/11/2012 16:08 Reply to this Report abuse
Leaders of India must look closely at the economic models of the US and China , countries which are have different economic models and contextualize the best of the 2 systems to the Indian scenario. Modi has done well to visit China, Japan and other Southeast Asian countries for they did not choose to isolate or insult Modi He must now make trips to oil rich South America and Africa As for those countries that once tried to isolate Modi, it is for the leaders of these countries to visit Gujarat first. A wise leader stands his ground, partly forgives but never forgets
Posted by raj at 10/11/2012 16:16 Reply to this Report abuse