Global Wealth 2015: Winning the Growth Game

Global Wealth 2015: Winning the Growth Game

          
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Global Wealth 2015: Winning the Growth Game

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  • Methodology

    BCG’s proprietary methodology for measuring the size of global wealth markets has been continuously refined and enhanced over the past 15 years. Our definition of wealth includes cash deposits, the net amount of listed securities held either directly or indirectly through managed funds, and life and pension assets. Such assets can typically be monetized easily. Other assets, more difficult to monetize and thus excluded, include real estate (primary residence as well as investments), business ownership, and collectibles, consumables, and consumer durables such as luxury goods.

    The market-sizing model of Winning the Growth Game: Global Wealth 2015 now covers 92 countries accounting for more than 99 percent of global GDP in 2014. All GDP and private-wealth growth rates are in nominal terms. (As originally released in June 2015, the report covered 62 countries accounting for some 94 percent of global GDP.) Venezuela is excluded this year owing to uncertainty about potentially high future inflation and the biased impact on projections of private wealth in Latin America.

    In order to exclude the effect of fluctuating currencies on private-wealth calculations, we used 2014 average exchange rates throughout. However, because of the extent of the Argentine peso devaluation relative to the U.S. dollar (32 percent), this year’s report uses year-by-year exchange rates for Argentina (that is, a 2013 exchange rate for 2013 wealth, a 2012 exchange rate for 2012 wealth, and so on) to better reflect the evolution of wealth in that country. The impact of the adjustment is a five-year annual growth projection of 1 percent, versus 19 percent using the 2014 average exchange rate throughout, for projected wealth of $0.4 trillion in 2019 instead of $0.8 trillion.