China Takes The No 1 Spot From US As the Richest Country In The World

china world

China has beaten the United States to get to the richest nation in the world. global wealth tripled over the early two decades and China is now in the leading spot,

worlds net worth chart

According to a newly connected research report by the research arm of consultants McKinsey &Co.

The report was examined based on the national balance sheets of ten countries representing over 60% of world income.

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

10% Rich Households

The worldwide net worth rose to$ 514 trillion in 2020, from$ 156 trillion in 2000, according to the new research. China arose at the top of the worldwide list, counting for nearly one-third of the increase.

China’s net wealth jumped to $120 trillion in 2020 from just $7 trillion in 2000. This records a jump of $113 trillion in 20 years, helping China overtake the United States in terms of net worth.

During the same cycle, the US improved its net worth by more than double to $90 trillion. even though, US could not beat China because of its low increase in property prices.

In both nations, more than two-thirds of the wealth is held by the wealthiest 10% of households, and their share has been increasing, according to the report

Where IS All The Wealth Saved?

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The Research of McKinsey shows 68% of global net worth is stored in real estate. The balance is held in many things like infrastructure, machinery, and equipment and, to a much lesser extent, so-called intangibles like intellectual property and patents.

Where does India stand In This Competition?

India began its profitable reform in the early 1990s, further than a decade after China. But in the last- quarter-century, China has hastened its economy, while India’s has laced comparatively.

Lately, on the occurrence of 30 years of economic liberalization, the chairman of India’s largest company by market value Reliance Industries Ltd Mukesh Ambani spoke bold economic reforms that helped GDP of$ 266 billion in 1991 grow by over ten times.

“India transformed from an economy of scarcity in 1991 into an economy of sufficiency in 2021. Now, India has to transform itself into an economy of sustainable abundance and equitable prosperity for all by 2051. In India, equity will be at the heart of our collective prosperity,”he wrote in a column in The Times of India.

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