The Richest in the World are the Swiss, Croats 34th

The richest in the world in 2014, according to net financial assets per capita, were the citizens of Switzerland, the USA, and the United Kingdom, while Croatia ranked 34th, with an average net financial asset of 7,770 euros per citizen, according to the sixth edition of the Global Wealth Report published by Allianz on Tuesday.

The growth of gross financial assets in Croatia last year was 7.3 percent, and net growth was 12 percent, with Allianz explaining the difference between gross and net amounts as a result of the development of private debt, which has decreased for the third consecutive year, by 0.6 percent. However, as highlighted in the report, Croatia’s indebtedness still significantly exceeds the average of EU member states. The average net financial asset per capita in Croatia last year was 7,770 euros.

Among the top 20 richest countries by net financial assets per capita, there is not a single country from Eastern Europe. Switzerland ranks first, with an average net financial asset per capita in 2014 of as much as 157,450 euros. The United States follows with 138,710 euros and the United Kingdom with 86,230 euros in net financial assets per capita.

Allianz notes that last year the number of people belonging to the middle class in relation to global wealth exceeded one billion for the first time. Since 2000, nearly 600 million people have moved into the middle-class category, with two-thirds of them coming from Asia.

For the first time in this report, Allianz also calculated the Gini coefficient for each country. According to the calculation, the Gini coefficient for Croatia is 60.8, which is in line with the average for Eastern Europe, indicating that wealth distribution in Croatia is not unequal.

The report analyzes the state of assets and debts of private households in more than 50 countries worldwide, showing that global gross financial assets of households increased by 7.1 percent last year, reaching 136 trillion euros, which is above the value of all registered companies worldwide and all government debts. Allianz points out that one of the main factors that stimulated growth in 2014 was household savings, but also emphasizes the positive impact of markets in Asia and America.

– Many observers will interpret these figures as evidence of so-called over-savings, but that is a mistaken viewpoint, emphasizes Allianz’s chief economist Michael Heise.

– In relation to low interest rates, too many households still do not save enough for retirement.

Global debts of private households grew last year at a slower rate than financial assets, at 4.3 percent, reaching 35 trillion euros, the highest level since the beginning of the financial crisis. Subtracting debt from gross financial assets, by the end of 2014, net financial assets reached a new record of over 100 trillion euros, an increase of 8.1 percent compared to the previous year.

The analysis shows a slowdown in the growth rate of net financial assets in Eastern Europe in 2014 by three percentage points compared to the previous year, to 8.6 percent. For comparison, the growth rate in the Eurozone was 6.2 percent and was for the first time higher than the growth rate in North America of 5.3 percent.

Asia ranks first in asset growth, where net financial assets increased by 18.2 percent during 2014, driven by strong growth in equity assets, especially in China. A novelty is that total private wealth in China has for the first time exceeded the amount of private wealth in Japan, the report states.