China surpasses US as richest country in the world – Community News
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China surpasses US as richest country in the world

Beijing: Global prosperity has tripled in the past two decades, with China leading the way and overtaking the US for the global top spot, Bloomberg reported.

A report by McKinsey & Co. which examines the national balance sheets of ten countries that together represent more than 60 percent of the world’s income. China was responsible for nearly a third of global wealth gains over the past two decades, the report said.

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

According to the study, global wealth rose to $514 trillion in 2020, from $156 trillion in 2000.

China accounted for almost a third of the increase.

Its wealth skyrocketed to $120 trillion, from just $7 trillion in 2000, the year before it joined the World Trade Organization, accelerating its economic growth, the report said.

The US, hampered by more moderate increases in real estate prices, saw its net worth more than double over the period to $90 trillion.

In both countries – the world’s largest economies – more than two-thirds of wealth is in the hands of the richest 10 percent of households, and their share has increased, the report said.

According to a calculation by McKinsey, 68 percent of global wealth is stored in real estate.

The balance is held in things like infrastructure, machinery and equipment and, to a much lesser extent, so-called intangible assets such as intellectual property and patents, it added.

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Published on: Tuesday 16 November 2021, 15:13 IST