Global wealth tripled over the last two decades, a period that saw China‘s net worth grow to $120 trillion in 2020 from $7 trillion in 2000. The wealth of world’s second-richest country United States more than doubled to $90 trillion, according to a report by US-based global management consulting firm McKinsey & Co. Overall, net worth worldwide rose to $514 trillion in 2020 from $156 trillion in 2000, says the report based on national balance sheets of ten countries.
Top 10 Richest Countries In The World
China: $113 trillion
US: $50 trillion
Germany: $14 trillion
France: $14 trillion
UK: $7 trillion
Canada: $7 trillion
Australia: $7 trillion
Japan: $3 trillion
Mexico: $3 trillion
Sweden: $2 trillion
The report says that over two-thirds of the wealth of China and US are held by the richest 10% of households. Real estate accounts for 68% of global net worth, while the rest is stored in infrastructure, machinery and equipment and so-called intangibles like intellectual property and patents.
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Rising property prices driven by declining interest rates have contributed the most to the sharp rise in net worth during the 20 year period.
In China, President Xi Jinping is pushing the “common prosperity” agenda to make sure the benefits of the financial boom are distributed evenly in the country.
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According to a Bloomberg report, China’s richest 20% earn 10 times more than the poorest 20%, consistently since 2015. More than 600 million people still earn 12,000 yuan ($1,858) or less annually in China, which is set to overtake the US to become the world’s largest economy in coming years.
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China also has the largest number of billionaires- 81- on Bloomberg’s ranking of the world’s 500 richest people.
Similarly, a Credit Suisse Group AG report showed that in 2020, the top 1% in US where the share of wealth with the top 1 percent owned nearly 35% of the nation’s wealth.
