Milionaire comparision Essay Example | Topics and Well Written Essays - 1000 words

Milionaire comparision - Essay Example chinawares number of millionaires is currently at 1.12 million in 2013 and is judge to rise to 2.1 million in 2018 thus representing an 88% increase. In the last one year, China experienced 90, 000 rising millionaires making her projections for 2018 to be doubled. This essay compares and analyses factors catapulting China and Indias rapid ingathering in the number of millionaires. China, India and Singapore recorded the highest increase in millionaires in 2011 and the Asia-Pacific experienced a rise in riches while Western Europe and America encountered a decline in riches. The millionaire households in China rose by16 percentage and India saw a 21% increase, which represented 1.43 million and 162, 000 respectively. Nevertheless, the millionaires households in America flowd by 129, 000. US seems to lose the number of millionaires to China and India where the percentage increase in overall private wealth in both China and Indias overall pri vate wealth has been attributed to their strong GDP (Datamonitor Financial, 2012). The ii emerging markets tend to drive the future harvest-feast of wealth as the US, Western Europe and Japan loses wealth prompting the financial services and conventional wealth managers to look to the new markets for profit maximization. Banks in India and China are preparing themselves to capture their new millionaire clients. Although the United States and Japan rank first and second as the countries with a huge number of millionaires, the rapid growth in millionaires is only evident in India and China (New, 2012). According to Hess (2013), mature markets such as US, Japan and Western Europe experience either slacken or negative growth while emerging markets such as China and India ride a wave of very strong momentum centering their people to greater heights. The chinas wealthy people rise at a higher pasture compared to other countries experiencing financial crisis recovery. Rapid scotch gr owth experienced in China, India and other emerging markets has largely contributed to the number of millionaires globally. The millionaires in these countries boast cash, stock and cash assets of more than $1 million and the two countries are likely to experience the rapid growth because of their many listed companies. The robust exports linked with both China and India enhanced their GDP growth making the rate triple the once for developed countries. Recent stinting growth in both China and India that has resulted to a huge number of millionaires is based on exports mostly to Europe and North America. Upon joining World Trade Organization, Chinas export has largely increased making her value of exports between 2006 and 2013 to double from $1.1 one million million to $2.3 trillion. Similarly, India is further expected to experience a growth in exports from $191 billion to $350 billion within the same period (Hess, 2013). The high rate of domestic acquire in both countries due to their high population is likely to enhance their respective economic expansion thus leading to emergence of more millionaires. The decrease in demand from Western Europe and the US because of the financial crisis and the Eurozones debt challenges can therefore stall the growth of Chinas economy. Interestingly, the impressive economic growth in India and China is unequal making their millionaires to represent 3.0% of the larger population. Rate of unequal