- World wealth increased 3 times in two decades
- China’s wealth increased 16 times in 20 years
China has now become the richest country in the world, surpassing the superpower the United States. China’s wealth has grown enormously in the last 20 years. While the wealth of the United States did not experience that much increase.
In fact, the latest report from the consulting firm McKinsey & Company says that the world’s wealth has tripled in the last two decades. But only China’s share of this increase has been a third, that is, about 33%. Consequently, China’s wealth has multiplied by 16 in almost two decades.
Great increase in China’s wealth
According to the report, in 2000, the world’s total wealth was about $ 156 trillion, which increased to $ 514 trillion in 2020. But only China has one third. The consulting firm McKinsey & Company has prepared this report by examining the balance sheets of the top 10 countries that have 60 percent of world revenues.
China’s economy has grown rapidly in the last 20 years. Year 2000 China became a member of the World Trade Organization (WTO). China’s total wealth at that time was estimated at $ 7 trillion, which has increased to $ 120 trillion in the last 20 years. In other words, China’s wealth has increased by $ 113 trillion in 20 years.
America’s wealth doubles in 20 years
America’s wealth has grown very little compared to China in the past 20 years. In 2020, the total wealth of the United States has been estimated at $ 90 trillion. America’s wealth has only doubled in the last 20 years. According to the report, due to the slight increase in property prices in the United States, the property remained below China and lost the first place.
It is significant that the United States and China are the two largest economies in the world. According to the report, more than two-thirds of the wealth of these two countries belongs to the richest 10 percent of people and their share is continuously increasing. According to the McKinsey report, 68 percent of the world’s wealth is invested in real estate. The rest is in infrastructure, machinery and equipment, intellectual property and patents.