As wealth across the globe tripled over the last two decades, China sprinted the list to the top to take over the US that previously held its position as the world’s richest nation.
A new research by McKinsey & Co. – ‘The rise and rise of the global balance sheet: How productively are we using our wealth?‘ – that examines national balance sheets of ten countries representing over sixty percent of the world’s income shows that net worth worldwide rose to $514 trillion in 2020, from $156 trillion in 2000. Of this wealth, China accounted for almost one-third of the increase and the country’s wealth sky-rocketed to $120 trillion from a mere $7 trillion in 2000, a year before the nation joined the World Trade Organization (WTO).
The United States of America on the other hand saw a net worth more than double over the period, to $90 trillion and both USA and China account for two-thirds of the wealth by the richest 10% of households and their share just keeps increasing, stated the report.
The study also highlights that 68% of global net worth is stored in real estate and the rest is held in assets like infrastructure, machinery, and equipment and intangibles like intellectual property and patents. The study does not count Financial assets in global wealth calculations as they are effectively offset by liabilities.
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