Taiwan moved up three places to a best-ever fifth in the latest Allianz Global Wealth Report released Sept. 27 by the Munich-based financial services group.
Among the 53 economies surveyed in the annual report, Taiwan averaged net per capita financial assets of 92,360 euros (US$109,128), up 9.6 percent from the year before and behind only the U.S., 177,210 euros; Switzerland, 175,720 euros; Japan, 96,890 euros; and Sweden, 95,050 euros. The global average is 25,510 euros, up 7.1 percent year on year largely due to 2016’s year-end rally of stock markets worldwide.
Taiwan joined Japan and Singapore as the only three economies in Asia making the 18-member high-wealth list. Although the country trailed Japan at No. 1, it is expected to overhaul its neighbor as early as next year, according to the report.
In terms of liabilities, Taiwan’s per capita debt was 18,945 euros, slightly above the global average of 17,490 euros and the fourth highest in Asia behind Singapore, South Korea and Japan.
A breakdown of locals’ asset portfolios revealed bank deposits, securities, and insurance and pensions comprise 39 percent, 27 percent and 25 percent, respectively. In addition to economic strength, the report identified ease of access to financial services and market awareness as playing a key role in consumers’ accumulation of financial assets.
This healthy state of affairs is illustrated by Taiwan’s Asia-leading asset ratio, defined by household gross financial assets as a percentage of gross domestic product. At 511.4 percent, well above the global average of 286.5 percent, the figure reflects the maturity of the country’s financial markets and helps explain locals’ asset accumulation.
First issued in 2010, the report is one of the most respected of its kind in analyzing the asset and debt situation of households in more than 50 countries and territories. (SFC-E)
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