Primary Taiwanese news agency TheCentral News Agency (CNA) recently reported that the financial services company Allianz just released its Allianz Global Wealth Report 2022. The Report shows Taiwan’s per capita net assets amounted to 138,220 euros (approximately US$134, 363), surpassing Japan and Singapore to rank first in Asia and 5th in the world (after the United States, Switzerland, Denmark and Sweden). The latest report, compiling data for 2021, analyzes the asset and debt positions of nearly 60 countries, indicating 2021 may be the last year of substantial economic growth, and 2022 will be a turning point, with the world likely to undergo a “dramatic shift.” The report also highlights that Asia is richer than Europe. The total financial assets of private households in China are estimated at 32 trillion euros, accounting for 14 percent of the world’s total financial assets. Japan is at 16 trillion euros. China and Japan are second only to the United States’ 103 trillion euros. Asia has overtaken Europe as the second richest region after the U.S. However, the Report bluntly says 2022 will be a turning point. At the beginning of the year, the Russian-Ukrainian war stifled the recovery after the epidemic and turned the world upside down, fueling soaring inflation, and governments of various countries resorted to monetary tightening policies to curb inflation. In addition, the war also deepened the energy and food crises. The report argues that monetary tightening is squeezing the economy and markets after the value of household financial assets hit a record high for three years in a row. “in real terms, households will lose ten percent of their wealth.”
Source: CNA, October 14, 2022
https://www.cna.com.tw/news/afe/202210140102.aspx