The latest Allianz «Global Wealth Report» says assets in Asia are growing twice as fast as other regions.

2016 was politically a turbulent year, but private wealth shrugged it off, that according to the Allianz report which puts the asset and debt situation of households in more than 50 countries under the microscope. 

After a weaker 2015 financial assets grew again by 7.1 percent last year, more or less matching the post-crisis average. Worldwide, financial assets climbed to a new record high of almost 170 trillion Euro.

Asia Growing Quickest 

Last year's acceleration in growth came mostly from industrialized countries, where growth doubled to 5.2 percent. However, Asia (ex-Japan) was once again the uncontested leader in 2016, with growth of 15 percent, in China financial assets increased by 17.9 percent.

In a long-term comparison, too, Asia (ex-Japan) is the dominant region, particularly when inflation is also taken into account. Gross per capita financial assets in Asia (ex-Japan) grew by almost 11 percent per year in real terms in the last decade, compared to 2.1 percent in North America and 1.4 percent in Western Europe.

Singapore Top in Asia – Before Debt

Net financial assets of Singaporean households grew in 2016 by 9.6 percent, the fastest rate in the last four years. In the global ranking of the richest countries (per capita financial assets), in net terms, three Asian countries, Japan, Taiwan and Singapore, were among the top 10 in 2016.

While in net terms Japan is still number one in Asia, in gross terms it already lost its top rank to Singapore. China rose through the rankings and climbed to rank 27 in 2016; in 2000, it was still at position 40.

Warning Signs

Global household liabilities increased by 5.5 percent in 2016, the highest rate of growth since 2007. That means that debt also rose faster than nominal economic output for the first time since 2009, and the global debt ratio increased by almost 1 percentage point to 64.6 percent.

In Asia (ex-Japan) debt growth rose sharply by a further four percentage points to just under 17 percent, pushing the debt ratio to 46.3 percent. At the top were Chinese households which ratcheted up their liabilities by a whopping 23 percent (debt ratio: 45.1 percent).

That means that the Asian region while growing fastest, also accounts for almost 20 percent of global private liabilities of just under 41 trillion Euro, compared with less than 7 percent ten years ago.