Poor economic outlook for Italy drives the wealthy to look elsewhere
Italy has struggled since the financial crisis of 2008, creating the worst financial situation in the country since World War 2 and causing many Italian millionaires to look elsewhere for financial safety.
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February 12, 2014 (www.investorideas.com newswire) According to a new report from WealthInsight, 41.5% of Italian wealth is reported to be held outside the country, much higher than the worldwide average of 20-30%.
With public debt increasing since 2007 to 126% of GDP by 2012, Italy has struggled to remain dominant within Europe and keep its balance sheet at a comfortable level. The biggest sector to grow within 2012 was the manufacturing sector which saw an increase of only 7%, while the financial sector shrunk by 18%. Strict austerity measures and increases in tax across the country were some of the key factors in these low percentages.
Multimillionaires account for 1.5% of the total wealthy population in Italy, which is over double the global average of 0.7%. WealthInsight expects the number of multimillionaires to increase by 10%, to reach 3,992 individuals in 2017, up from 3,503 in 2012. At the same time their wealth is projected to increase by 16% to reach US$495 billion by 2017.
"These figures show a harsh reality of where money is situated within Italy, with all the capital being possessed by a handful of people. This has created a major imbalance of wealth across the country. However, by 2017 the population of HNWI's in Italy is expected to increase by 10%. This could be due to HNWI's in the Far East investing in Western heritage, for example the fashion industry, creating more opportunities for people to invest in the market”, says WealthInsight Analyst, Tom Carlisle.
"The strict measures that have been agreed by the Italian government and the European Union has stifled Italy of creating new HNWIs, while the ones they have continue to take their money and invest it elsewhere”, says Carlisle.
This information is based on the WealthInsight report: 'Italy 2013 Wealth Book'.
'Millionaires' otherwise known as 'high net worth individuals' or 'HNWIs' refer to individuals with net assets of US$1 million or more excluding their primary residences.
'Multimillionaires' otherwise known as 'ultra high net worth individuals' or 'UHNWIs' are individuals with net assets of US$30 million or more excluding their primary residences.
The WealthInsight Intelligence Center Database is an information resource on the world's high net worth individuals (HNWI) and wealth sector. Compiled and curated by a team of research specialists, the database comprises dossiers on over 75,000 HNWIs from around the world. The Intelligent Center also includes tracking of wealth and liquidity events as they happen and detailed profiles of major private banks, wealth managers and family offices in each market.
For further information
Please contact Ida Kloster at the WealthInsight press office at +44 (0) 2032 200 818 or email firstname.lastname@example.org.
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