In the next 4 years, figures show that Singapore is projected to surpass the UK, becoming the second biggest offshore financial centre internationally, behind Switzerland, marking the shift of global wealth to the east.
The statistics have been established and released by the Boston Consulting Group’s in their annual Global Wealth report; showing that the UK’s current $1.4 trillion offshore financial industry will eventually be overtaken by Singapore by 2020.
The projections also show that any offshore funds being held in Singapore will contract to $1.8 trillion, compared to the UK’s predicted $1.7 trillion. Generally, private wealth held in offshore jurisdictions also expanded by 3% to almost $10 trillion last year, although experts are unsure whether the recent disclosures revealed from the Panama Papers scandal this year will affect further growth. The use of overseas financial centres in developed jurisdictions has already dropped, according to the incorporation statistics.
Offshore funds held by investors in Japan, Western Europe and North America has fallen by a further 3% in 2015.
Overall international wealth grew is growing at a slower rate than 2015, the report also revealed. General financial performance of global markets has been a catalyst to figures regarding offshore centres; financial experts are keen to point out an overall reduction of economic development drives new wealth in other developing economies, hence the reason for the projections.