Millions of South African people suffer from poverty and the government grants do little to alleviate the burden. However, the country has been declared 36th wealthiest country out of 50 countries for the second time in a row in the eighth Allianz Global Wealth Report 2017.
The report, which was released today, September 27, 2017, puts the assets and liabilities of households in more than 50 countries under the microscope, including South Africa.
Even though South Africa made the top 50 its ranking at number 36 is still considered a performance considering the mineral wealth and opportunities that the country could take advantage of. At R111.640, South Africa’s net financial assets per capita, is higher than other BRICS countries except for China. However, South Africa’s net financial assets of households grew by only 5.3% – one of the slowest rates among the BRICS countries, which is also below the average of advanced markets.
Allianz said the country’s performance is due to the market’s financial asset growth that remained lackluster for a second year in a row at 4.7%. Although it was slightly higher than the year before, it was well below the inflation rate of 6.6%. Globally, 2016 was a politically unstable and very turbulent year, but private wealth shrugged it off: after a weaker 2015 (+4.7%), financial assets grew again by 7.1% to a new record high of almost €170 trillion.
The growth of liabilities slowed down to 3.2% as South African households continued to show some debt discipline. This has resulted in the debt ratio falling below 45% for the first time in ten years. Even though the country’s households have trimmed their debt ratio by 10% over the last decade, its overall level remains elevated, and higher than the emerging market average of around 35%, which is still very concerning.
Overall, South Africa’s relatively high average wealth has to be taken with a pinch of salt, because wealth is unevenly distributed. More than 70% of all net financial assets are owned by 10% of the population. While, globally, only the US displays a higher share of wealth, the global average is about 53%.
At the top of the list, a change of the guard occurred in 2016, with the USA capturing the top spot from Switzerland (by a razor-thin margin). Otherwise, the list gives the usual suspects, with Scandinavian and Asian countries dominating.
Top 20 in 2016 by…
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… net per capita financial assets |
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… gross per capita financial assets |
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in EUR |
y-o-y in % |
rank |
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|
in EUR |
y-o-y in % |
rank |
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#1 USA |
177,210 |
5.8 |
2 |
|
#1 Switzerland |
268,840 |
2.4 |
1 |
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#2 Switzerland |
175,720 |
2.7 |
1 |
|
#2 USA |
221,690 |
5.1 |
2 |
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#3 Japan |
96,890 |
1.8 |
3 |
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#3 Denmark |
146,490 |
2.2 |
7 |
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#4 Sweden |
95,050 |
7.0 |
14 |
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#4 Netherlands |
137,540 |
6.0 |
5 |
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#5 Taiwan |
92,360 |
9.6 |
12 |
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#5 Sweden |
136,270 |
6.6 |
14 |
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#6 Belgium |
92,080 |
4.3 |
4 |
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#6 Australia |
133,010 |
6.9 |
13 |
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#7 Singapore |
89,570 |
7.9 |
15 |
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#7 Canada |
128,510 |
6.6 |
8 |
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#8 Netherlands |
87,980 |
9.4 |
9 |
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#8 Singapore |
126,640 |
5.8 |
9 |
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#9 Canada |
87,590 |
7.8 |
8 |
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#9 Japan |
118,950 |
1.9 |
3 |
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#10 New Zealand |
86,030 |
0.6 |
7 |
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#10 UK |
116,570 |
7.3 |
6 |
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#11 UK |
84,080 |
8.6 |
5 |
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#11 Belgium |
115,430 |
4.1 |
4 |
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#12 Denmark |
81,590 |
2.8 |
13 |
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#12 New Zealand |
113,660 |
2.1 |
10 |
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#13 Israel |
73,330 |
5.4 |
10 |
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#13 Taiwan |
111,310 |
8.7 |
16 |
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#14 Australia |
67,390 |
8.8 |
19 |
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#14 Norway |
93,640 |
4.9 |
20 |
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#15 France |
56,040 |
6.3 |
11 |
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#15 Israel |
91,830 |
5.3 |
18 |
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#16 Italy |
54,530 |
0.2 |
6 |
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#16 France |
78,840 |
5.0 |
12 |
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#17 Austria |
51,980 |
2.0 |
17 |
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#17 Ireland |
77,860 |
2.4 |
15 |
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#18 Germany |
49,760 |
5.2 |
18 |
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#18 Austria |
73,160 |
2.4 |
19 |
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#19 Ireland |
45,100 |
6.6 |
16 |
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#19 Germany |
70,350 |
4.5 |
17 |
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#20 Finland |
28,650 |
4.8 |
20 |
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#20 Italy |
70,130 |
0.4 |
11 |
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Munich, Johannesburg September 27, 2017