There’s a lot to contemplate in the recently released 2012 Wealth Report from Knight Frank and Citi Private Bank, particularly for anyone whose customer base lies in high net worth, property or both. My interest is not necessarily in those spaces, but more in the environmental factors surrounding those spaces, starting with this succession of charts:
The most glaring thing here is Europe making up nine of the bottom 10 countries for economic growth between now and 2050.
Second most glaring thing: the absence of Brazil, Russia and China entirely from tables 2 or 3 and India only mattering as far as economic growth is concerned. If this isn’t an argument for the complete idiocy of the BRIC acronym, I don’t know what is.
Third: every one of the top 10 economic growth countries between now and 2050 (table 2) is by any definition poor today and extremely challenging to conduct business in. They also are overwhelmingly saddled with natural resources.
There’s clearly a lot more to say about this sector, but for the moment I’m just putting up some quick numbers to have it on file here. From Vietnam News:
The State-owned Bank for Investment and Development of Viet Nam has already earmarked loans worth VND4 trillion (US$192.13 million) at 16 per cent per year interest to individuals and households buying housing in projects it funds. Continue reading