EATON BUSINESS SCHOOL LLC 2023 Certification Badge

Chat with Student

Chat with Students

Phone call

Call

whatsapp

Whatsapp

mail

Email

Chat with Student

Chat with Students

Phone call

Call

whatsapp

Whatsapp

mail

Email

Share this article

Global wealth tripled over the last two decades, with China leading the way and overtaking the US for the top spot worldwide.

A report by McKinsey & Co. examines the national balance sheets of ten countries representing more than 60 per cent of the world’s income.

China accounted for almost one-third of gains in global net worth over the past two decades, the report said.

We are now wealthier than we have ever been,” Jan Mischke, a partner at the McKinsey Global Institute in Zurich, said in an interview.

Net worth worldwide rose to $514 trillion in 2020, from $156 trillion in 2000, according to the study. China accounted for almost one-third of the increase.

The report analysed the national balance sheets of 10 countries, which accounted for over 60 percent of the world’s income. Apart from China and US, the countries in the report included Germany, France, the UK, Japan, Sweden, Mexico, Canada and Australia.

As for the US, the net worth of the country increased to almost $90 trillion in two decades.

In both US and China, the two biggest global economies, more than two-thirds of the wealth is concentrated in just 10 percent of the richest households.

About 68 percent of the global net worth is stored in real estate, as per the report. The surge in net worth has been led in part by rising property prices, making the net worth outstrip the rise in global gross domestic product.

The rise in real-estate prices can increase the risk of a financial crisis, like the one that occurred in 2008 after the US housing bubble burst.

bloo

According to a new global financial data from McKinsey & Co., initially reported by Bloomberg, China’s wealth launched to $120 trillion, from its previous $7 trillion in 2000 — an unspeakably colossal growth from its days before joining the World Trade Organization, which accelerated its rise to power.

 

The U.S., meanwhile, has experienced muted increases in property prices, but nearly doubled its net worth over the same period, to $90 trillion.

China and the U.S. are the largest economies in the world, but the lion’s share of the world’s wealth is held by the richest 10% of households.

And they’re only getting richer, according to the report. The McKinsey report also said 68% of the global net worth is tied up in the real estate, but it also included machinery, infrastructure, equipment, and, although comprising a much smaller portion, intangible goods like patents and intellectual property.

  

On the other hand!

 

According to the quint, ‘’ there has been much discussion about the challenges facing the Chinese economy. Some believe that the declining GDP growth rate and the sustained challenges related to debt are indicative of long-standing fragility that is now coming to the fore.

Others have argued that the barrage of regulatory actions taken over the past year indicate that the Party under Xi Jinping is turning sharply left, expanding control and suffocating the private sector.

Such assessments, unfortunately, miss the woods for the trees. The current upheaval is not a fallout of the inherent weaknesses of the Chinese economic model.

Rather, it is a product of a fundamental restructuring that is being engineered by the leadership to address the model’s limitations and stimulate new drivers to achieve high-quality growth. Understanding this direction is critical for foreign investors and policymakers.

 

Sources: Bloomberg, the quint, business insider, firstpost.com, india.com

Share this article

Enquiry Form

    Share this article

    Recommended Courses

    A woman with a Postgraduate Diploma in Project Management is standing next to a stack of money.
    CIQ

    Postgraduate Diploma in Project Management

    Triple Certification

    4 Months

    Live Interactive Online Classes

    A group of individuals analyzing a pie chart as part of their Professional Diploma in Operations Management program.
    CIQ

    Operations Management

    Triple Certification

    1 Month

    Live Interactive Online Classes

    A 3D model of a calculator showcasing Executive MBA in Business Analytics on a yellow background.
    gmu
    CIQ Logo
    CMI Logo
    SQA

    Postgraduate Diploma in Accounting and Finance

    Triple Certification

    4 Months

    Live Interactive Online Classes

    An image of a person climbing up a light bulb, representing their achievement as a Doctor of Business Administration.
    Unimarconi

    Doctorate of Business Administration

    Triple Certification

    36 Months

    Live Interactive Online Classes

    A heart with a stethoscope showcasing the Executive MBA program in Healthcare Management and Leadership.
    gmu
    CIQ Logo
    CMI Logo
    SQA

    EMBA – Healthcare Management and Leadership

    Triple Certification

    12 Months

    Live Interactive Online Classes

    A graduation cap adorned with social media icons symbolizing the integration of digital marketing.
    gmu
    CIQ Logo
    CMI Logo
    SQA

    EMBA – Digital Marketing and Social Media

    Triple Certification

    12 Months

    Live Interactive Online Classes

    A person using a laptop for Executive MBA studies.
    gmu
    CIQ Logo
    CMI Logo
    SQA

    EMBA – Procurement and Contracts Management

    Triple Certification

    12 Months

    Live Interactive Online Classes

    A group of wooden people with an Executive Master of Business Administration from the University of Gloucestershire.
    gmu
    CIQ Logo
    CMI Logo
    SQA

    Executive Master Of Business Administration

    Triple Certification

    12 Months

    Live Interactive Online Classes

    A visualization of a bicycle and a globe, incorporating data analysis techniques.
    CIQ

    Postgraduate Diploma In International Business

    Triple Certification

    4 Months

    Live Interactive Online Classes

    A collection of sports items on a vibrant yellow background.
    gmu
    CIQ Logo
    CMI Logo
    SQA

    Postgraduate Diploma in Sports Management

    Triple Certification

    4 Months

    Live Interactive Online Classes

    Previous
    Next