Japan lost 1.3 million millionaires within only one year, between June 2012 and June 2013, according to Credit Suisse’s Global Wealth report released earlier this week. It is the country with the greatest wealth loss, with no other country losing more than 12,000 millionaires (millionaires refer to households with $1 million or more in assets).
“Japan completely dominates the list,” the report said.
Brazil came in second, with 100 times fewer millionaires than in Japan. It is a great contrast to last year, when Japan reported an increase of its millionaire population by around 500,000.
The millionaires number’s drop is related to “Abenomics”, the economic reform plan to defeat deflation spearheaded by Japanese prime minister Shinzo Abe, the international press comments.
The policy has driven the yen/dollar exchange rate down by 22 percent over the past year, which has in turn driven down household wealth by $5.8 trillion over that time period. That is roughly 20 percent of the country’s total net worth, according to the report.
However, according to a United Nations report last year that evaluated “wealth” in terms of education and skills, natural resources, and “manufactured” or physical assets like infrastructure, Japan is second only to the United States and 2.8 times wealthier than China.
Average disposable income for Japanese households is $24,147 a year, above the OECD average and not much below America’s.