China Is Now The Richest Country On Earth

/
img

At the moment the richest country in the world, ahead of the United States is China.

With China leading, over the past 2 decades International wealth has tripled, passing the US for the world’ high spot.

In an interview one of the partners in McKinsey Global Institute, said: “We are now richer than ever.” International net value rose to $ 514 trillion in 2020, from $ 156 trillion in 2000, in keeping with the study. For nearly a third of the increase China was accounted. Its wealth skyrocketed to $ one hundred twenty trillion from simply $ seven trillion in 2000, the year before it joined the planet Trade Organization.

Richest 10%

The United States, held back by smaller increases in house prices, saw its net worth more than double over the period, reaching $ 90 trillion. 10% of households and their share is increasing, according to the report.

According to McKinsey calculations, 68% of global equities are stored in the real estate sector. The balance is held in items such as infrastructure, machinery and equipment and, to a much lesser extent, intangible assets such as intellectual property and patents.

Side Effects

The surge in equity over the past two decades has outpaced the rise in global gross domestic product and has been fueled by rising house prices inflated by falling interest rates, according to McKinsey. He found that asset prices are nearly 50% of their long-term average relative to income.

Rising home values can make home ownership unsustainable for many people and increase the risk of a financial crisis like the one that hit the United States in 2008. China could potentially face similar debt problems from real estate developers like the China Evergrande group.

Sources:

www.iflscience.com

www.cnbctv18.com

This div height required for enabling the sticky sidebar