China’s burgeoning middle class has now become the largest in the world, overtaking the United States.
Asia continues to be the area of the greatest expansion of the world's middle class, said Credit Suisse, in its annual report on the distribution of wealth.
China has the second largest economy in the world, with a fifth of its population, and nearly 10% of global wealth.
Credit Suisse said that there are now 109 million adults in China’s middle class compared to 92 million in the US.
While the middle class in Europe numbers 194 million, they are citizens of a number of countries and not just one, such as China or the US. At the same time, however, wealth remains concentrated in Europe and North America.
The report pointed to size and wealth of the middle class as the motor of economic development.
While the number of middle class worldwide grew last year at a slower pace than the wealthy, it "will continue to expand in emerging economies overall, with a lion's share of that growth to occur in Asia," said Credit Suisse chief executive Tidjane Thiam.
"As a result, we will see changing consumption patterns as well as societal changes as, historically, the middle class has acted as an agent of stability and prosperity," he added.
The report also found the number of millionaires is forecast to increase 46% to 49.3 million over the next five years, with Malaysia more than doubling the number of its millionaires.
