The amount of global wealth has tripled in the past two decades, with China overtaking the US for the top spot in the world.
A report released by financial consulting firm McKinsey & Co recently showed that China has led the US to become the largest net worth country on the planet.
According to Bloomberg news, China's total wealth has increased dramatically over the past 20 years, resulting in a 17-fold increase in net worth from $7 trillion in 2000 to $120 trillion in 2020.
The Asian powerhouse now accounts for nearly a third of the increase in global net worth over the past 20 years. In 2000, China joined the World Trade Organization (WTO), which helped spur the economic ascent.
Over the same period, the United States recorded a doubling of wealth. However, according to McKinsey, Washington has had to give way to Beijing in the list of the 10 richest countries because its net worth will only reach $90,000 billion in 2020.
In both countries, more than two-thirds of accumulated wealth is in the pockets of the richest 10% of households, and this share is growing.
In total, global wealth will reach $514 trillion in 2020, up from $156 trillion in 2000.
About 68% of this wealth is held in real estate. McKinsey adds that its rapid growth has surpassed that of world GDP during the same period. The rise in global wealth has been driven by soaring property prices.
However, rising real estate prices can make many people unable to afford housing. This situation could lead to a financial crisis like 2008, caused by the bursting of the real estate "bubble" in the US. This time, it could hit China hard as its property developers are heavily indebted.McKinsey warned that falling property prices could wipe out a third of global wealth.
T.T (baodautu.vn)