The current ratio of total assets to GDP (Gross domestic product) stands at 10%, which is notably lower than the European average of approximately 80%. This disparity presents a substantial opportunity for growth and convergence in the coming years.
Outlook to 2030
Looking ahead, we expect the Czech asset management market to partially converge towards the European average over the next 10 to 15 years. This projection is supported by several factors. Firstly, we anticipate nominal GDP growth of 5-6% annually until 2030, which will provide a solid foundation for market expansion. Given the strong correlation between asset growth and GDP growth, this economic development will likely drive the asset management sector forward.
The expected annual growth for the Czech asset management market until 2030 can be broken down into two components:
We project organic performance growth of around 4.2% annually, attributed to asset performance based on the current allocation in Czech portfolios.
Additionally, we expect a growth of approximately 8.3% due to the convergence factor and increased financialization of the Czech economy.
Combined, this results in aprojected total annual growth of 12.5% until 2030.
This growth trajectory, while slower than the historical 19% rate, still represents significant progress. If sustained, it would lead to substantial expansion of the asset management market relative to GDP.
However, it's important to note that full convergence to the European average is unlikely within this timeframe. The historically high propensity of the Czech population to save, as revealed by savings rates at the upper range of EU countries/peers (European Union), offers a solid base for the asset management industry.
This document has been produced by Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Vienna/Austria
Supervisory Authorities: Austrian Financial Market Authority (FMA), Austrian National Bank, European Central Bank within the Single Supervisory Mechanism (SSM).
Imprint according to the Austrian Media Act: Media Owner and Publisher is Raiffeisen Bank International AG
This document constitutes neither investment advice, an offer or a recommendation nor an invitation to execute a transaction. Past performance is no reliable indicator of future results. The information presented does not constitute binding tax, financial or legal advice.
This document is based on the knowledge the persons preparing the document have obtained up to the date of creation. Errors and misprints excepted.
As of October 2024