The wealth of the world has tripled in 10 years… China has surpassed America

The world’s wealth has tripled over the last two decades, while China has surpassed the US to become the richest country in the world.

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A new report by McKinsey & Co. Research, which examines the balance sheets of ten countries that account for more than 60% of global income, concluded that global net wealth rose to $514 trillion in 2020, from $156 trillion in 2000.

“We (the world) are richer now than we have ever been”, Jan Mickey, a partner at the Zurich-based McKinsey Global Institute, told Bloomberg in an interview.

According to the study, China accounted for nearly one-third of the increase in two decades, with its wealth jumping to $120 trillion, up from just $7 trillion in 2000, a year before its accession to the World Trade Organization, accelerating its economic rise.

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The United States, which has been bogged down by weak real-estate price increases, saw its net wealth more than double during this period, reaching $90 trillion.

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The report said that more than two-thirds of the wealth in the world’s two largest economies is owned by the 10% richest households, and their shares are increasing.

According to McKinsey’s calculations, 68% of the world’s net wealth is held in real estate. This is achieved by balancing assets such as infrastructure, machinery, and equipment, and to a lesser extent intangible assets such as intellectual property and patents.

As for financial assets, they are not included in the global wealth accounts, because they are effectively offset by financial obligations, according to the report. The report says that the company bonds held by the investor, for example, represent a debt to that company and therefore are not included in the wealth account.