Global wealth has grown markedly faster than the real economy over recent decades. Notably, much of this increase was driven by paper gains—asset price growth in excess of inflation—and was increasingly concentrated in equities: paper gains accounted for nearly 60% of wealth growth in 2025, versus roughly one-third historically, while equities alone drove 57%, compared with a 26% historical average. This increasingly equity-driven, paper-gain-led growth raises the risk of an eventual normalization to restore balance. McKinsey identifies four potential adjustment paths: productivity acceleration, sustained inflation, secular stagnation, or a balance-sheet reset. Of these, only productivity acceleration can close the wealth-income gap through real economic growth. Asia is relatively well positioned for this outcome, supported by its deep productive-capital base, investment upcycles across AI and energy transition, and ongoing corporate-governance reforms that are improving capital allocation and shareholder returns.

We cordially invite you to read the Asia Green Market Report Q2 2026.