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China overtakes America to the top in global wealth

A new report from McKinsey & Co. consultants that examined the national balance sheets of ten countries that account for more than 60 percent of the global income revealed that China has become the wealthiest nation, overtaking the United Nations, to the top in the list.

According to the analysis, the global net worth increased from $156 trillion in 2000 to $514 trillion in 2020. China was responsible for about a third of the rise. Its wealth grew to $120 trillion, up from $7 trillion the year before it joined the World Trade Organization, which spurred its economic growth.

The US saw its net worth more than double over the time, to $90 trillion, despite growth in property prices.

According to the report, the richest 10 percent of households in both countries — the world’s two largest economies — own more than two-thirds of the wealth, and their proportion is growing.

According to McKinsey, real estate accounts for 68 percent of worldwide net wealth. Infrastructure, machinery, and equipment, as well as, to a lesser extent, so-called intangibles like intellectual property and patents, hold the balance.

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