Chart of the Day: Singapore amongst highly indebted

Debt per adult in Singapore is nearly USD40,000.

According to the latest Credit Suisse Global Wealt Report, Singapore now ranks eighth in the world in terms of mean personal wealth after average wealth per adult more than doubled to USD 258,000 in mid-2012 from just USD 112,800.  

Average debt has also risen but at a level close to the start of the millennium unlike massive spikes recorded in other developed countries.

Singapore, nonetheless, remains amongst countries with high debt per adult.

Here's more from Credit Suisse:

The highest levels of debt per adult are found in developed countries with well functioning institutions and sophisticated credit markets. 

Based on average USD exchange rates since 2000, Denmark, Norway and Switzerland top the league table for household debt per adult in 2012, with values above USD 100,000. 

This is roughly twice the level seen in Canada, Sweden, the USA, the UK and Singapore, with Ireland and the Netherlands sitting between the two groups. By these standards, the average debt per adult in Spain (USD 31,200), Portugal (USD 25,800), Italy (USD 23,900) and Greece (USD 19,000) looks quite modest.

[The figure below] shows that average debt per adult increased during 2000–07 in all the high debt countries apart from Germany, where average debt has been flat, and Japan, where household debt has declined – possibly due in part to the ageing population, given the negative relationship between debt and age.

Countries with the highest debt per adult showed little tendency towards debt reduction in the aftermath of the financial crisis: Ireland, the USA and Hong Kong are the main exceptions. 

Apart from Germany and Japan, only Hong Kong and Singapore have debt levels in 2012 which are close to the levels close to the start of the millenium.