Global Wealth 2015: The Year in Review, a new report published by the Credit Suisse Group, reveals that the US is no longer home to the largest middle class on the planet. Overtaking its place for the first time is emerging economy China with 109 million adults now comprising its middle class – a clear margin ahead of the US’s 92 million. Home to one fifth of the world population, China now accounts for almost 10 percent of global wealth.
[T]he study also found that the inequality gap has widened this year
The shift indicates that the trend of a global expansion of the middle class is on-going, particularly in emerging countries and in Asia. “As a result, we will see changing consumption patterns as well as societal changes as, historically, the middle class has acted as an agent of stability and prosperity,” said Tidjane Thiam, CEO for Credit Suisse.
That being said, the study also found that the inequality gap has widened this year, with greater wealth for some of the richest people and countries. Thiam however stressed that despite this imbalance, the economic significance of the world’s growing middle class must not be underestimated, particularly given their impact on consumer markets.
Credit Suisse predicts that global wealth is set to continue increasing at around 6.5 percent each year, growing by 38 percent to $345trn by 2020. Given China’s rapid economic expansion since 2000, the country’s growth is set to continue, albeit at a slower pace. The number of China’s millionaires is also expected to increase significantly by 74 percent to 2.3 million over the next five years.
