While Europe still struggles to overcome the challenges with regards to its economic situation, seeing slow but steady growth, Asia appears to be far more prosperous and wealthy. Recent stats show that Asia's wealthy and super-rich people has increased considerably, but this fact has not occurred at random. The surging stock prices that Asia’s millionaires invest in, the rising property prices and the region’s high savings rates contributed to boosting people’s fortunes.
The CapGemini and Royal Bank of Canada survey revealed that more than 300,000 people became dollar millionaires across the continent, as Asia's cumulative wealth of mega-rich reached £7.5 trillion.
Moreover, the figures point out that:
- Wealthy population (those with at least $1 million) in places like China and Japan has risen by 9.4%
- Number of super rich (those worth at least £19million) grew even faster than the wealthy population increasing to 25,000
- Asia comes second to North America whose millionaire population surged by 11.5%
- 64 new billionaires emerged due to the rise of stock prices
- Asia’s millionaire population surpassed Europe’s for the first time in 2009 (according to previous editions of the report)
The study reveals that the prosperity and wealth of Asian millionaires lies in a variety of factors that can be largely associated to the economic culture of locals. I would say that Asian people are prone to investing in stock markets as an entrepreneurial and profit-making activity whereas Europeans tend to choose traditional methods such as working or investing in properties as their means to make their living.
Furthermore, although Europe is showing signs of life and is steadily exiting recession - with the GDP in the 17-nation Euro area expanding 0.3% in the April-June 2013 period - the average psychology of European investors still reveals uncertainties and reservations with investing in stocks like their Asian counterparts. Could this be the reason that Europe's dollar millionaires are far less than Asia's?
Apparently the economic situation in major Asian countries is much more favorable. China is a colossal exporter of toys, electronic gadgets, home appliances, shoes and clothes, food products jewellery, etc. Because China has a huge and efficient manpower resource this gives a competitive advantage in terms of its goods production.