According to the analysis, global net worth increased from $156 trillion in 2000 to $514 trillion in 2020.
Over the last two decades, international wealth has tripled, with China leading and exceeding the U.S as the world’s most prosperous country.
That’s one of the conclusions drawn from a recent analysis by McKinsey & Co.’s research department, which looked at the national financial sheets of ten countries accounting for more than 60% of global revenue.
In an interview, Jan Mischke, a companion at the McKinsey Global Institute in Zurich, observed, “We are today prosperous than we have ever been.”
According to the analysis, global net worth increased from $156 trillion in 2000 to $514 trillion in 2020. China was responsible for about a 3rd of the growth. Its wealth rose to $120 trillion in 2000, up from $7 trillion the year before it joined the(WTO) World Trade Organization, which accelerated its economic rise.
Richest 10%
The United States’ net worth more than doubled throughout the time, to $90 trillion, despite more moderate rises in property prices.
As per the report, the wealthiest 10% of households in both countries — the world’s two largest economies — own more than two-thirds of the wealth, and their percentage is growing.
Side Effects
According to McKinsey, the high rise in net worth over the last two decades has outpaced the expansion in the global gross domestic product and has been fueled by rising property prices driven by low-interest rates.
It discovered that asset prices are about 50% higher than their long-run average when matched to income. This raises matters about the wealth boom’s long-term viability.
“In so many aspects, increasing net worth through price rises above and beyond inflation is questionable,” Mischke said. “It has plenty of other negative side effects.”
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