Amid the gloomy forecast for global economy, an emerging affluence may soon be sweeping across Asia and Africa, with Nigeria and six other countries taking the lead.
Indeed, a survey revealed that new confidence about markets’ growth prospects, expected income rise, clear spending plans, and high optimism in achieving long-term wealth goal, would hallmark the economies of Nigeria and Kenya in particular.
The new independent study commissioned by Standard Chartered, which polled 7,000 emerging affluent consumers across seven of Standard Chartered’s markets– China, Hong Kong, India, Indonesia, Kenya, Nigeria and Singapore, offered new insights into the confidence levels, income expectations, saving plans, short and medium-term spending priorities, and long-term aspirations of people with rising incomes that are living in large cities.
Standard Chartered is an international banking group, with more than 86,000 employees and a 150-year history in some of the world’s most dynamic markets, banking people and companies that drive investment, trade and the creation of wealth across Asia, Africa and the Middle East, where it earns around 90 per cent of our income and profits.
A key finding in the study is a high level of confidence among the emerging affluent when it comes to the 10-year wealth goal, as respondents in six of the markets – Hong Kong, China, India, Indonesia, Nigeria and Singapore – say buying property is their top long-term financial aspiration, while launching their own business is the number one goal for the emerging affluent Kenyans.
Whether the 10-year wealth aspiration is to buy property or launch a business, on average, as many as 87% of the emerging affluent are optimistic they will achieve it.
The figure is considerably higher in the developing markets, with 100% of Nigerians and at least nine in 10 Kenyans, Indians, Indonesians and Chinese said they are confident about achieving their long-term financial goal.
The Chief Executive Officer, Retail Banking, Standard Chartered, Karen Fawcett, said: “At a time when many people are worried about the global economy, this study suggests it feels very different on the ground in Asia and Africa. These emerging affluent consumers are confident, ambitious and are driving wealth creation, which supports the long-term outlook for growth across these markets.
“Standard Chartered is focused on the fastest-growing cities in the world where there are high concentrations of affluent individuals seeking international banking solutions and comprehensive wealth solutions and advice. As disposable incomes rise and financial needs increase, we want to help our clients achieve their financial aspirations.”
Other findings showed that the majority are optimistic about growth prospects- on average, 75% of the emerging affluent said they expect their respective markets’ economy to grow next year, while 95% of the emerging affluent Indians are the most confident, which contrast 48% of those in Hong Kong.
Most expect their incomes to rise on average- 65% of the emerging affluent have seen their household disposable income rise in the past year, with the trend set to continue, as an average 72% expect their incomes to rise next year. The figure is far higher in Nigeria (88%), India (88%) and Indonesia (82%).