The growth of high net worth individuals and their wealth in Asia Pacific slowed in 2021, according to Capgemini's latest report, driven by a drag in the region’s two largest economies, China and Japan. 

The population of high net worth individuals (HNWI) in Asia Pacific reached 7.2 million with a total wealth of $25.33 trillion in 2021 – a 4.2 percent and 5.4 percent annual increase, respectively – according to Capgemini's World Wealth Report 2022.

This marks a material slowdown compared to the population and wealth growth of 5.8 percent and 8.4 percent, respectively, in 2020.

Globally, HNWI population increased 7.8 percent to over 22.4 million while wealth grew 8 percent to nearly $86 trillion.

China, Japan Slowdown

According to the report, lower growth in APAC was largely attributable to slowdowns in China and Japan.

HNWI wealth in China grew 6.2 percent in 2021 – compared to 13.5 percent in the previous year – due to ample challenges from property pressure, Covid-related challenges, domestic tech crackdown, U.S. delisting risks and weaker consumer confidence. 

In Japan, HNWI population and wealth increased 3.2 percent and 4.1 percent, respectively, amidst increased turbulence on the Nikkei 225.

Regional Divergence

But the region’s two largest economies did not fully dictate the trend with other markets registering relatively better performance.

Taiwan saw its HNWI population and wealth increase by 9.8 percent and 10.8 percent, respectively, fuelled by dissipated Covid fears and a semiconductor sector that benefited from strong demand for integrated circuits.

And in India, HNWI population climbed 10.5 percent while the segment’s wealth grew 11.6 percent which was credited to central banking liquidity, supportive domestic policies and vaccination drives. 

North America: Still King

Meanwhile, North America maintained its streak of having the highest HNWI population and wealth which increased 13.2 percent and 13.8 percent, respectively, in 2021.

Naturally, U.S. was the main growth driver with a 14 percent increase in wealth due to strong performance in the tech sector, especially in the fourth quarter. 

The latest edition marks the 26th year of Capgemini’s World Wealth Report. The 2022 report surveyed 2,973 HNWIs across 24 wealth markets as well as 40 wealth management executives in 10 markets.