Global wealth has tripled over the past two decades, with China overtaking the United States to impose itself. As evidenced by the report of analysts from the McKinsey Global Institute (MGI), writing Bloomberg.
The Institute conducted a study of 10 countries, which account for 60% of global income. Among them, besides China and the United States, are Germany, France, Great Britain, Canada, Australia, Japan, Mexico and Sweden. Russia is not on the list.
According to analyst findings, global net worth has grown from $ 156 trillion in 2000 to $ 514 trillion in 2020. “We are now richer than ever,” MGI partner Jan Mischke said in a statement. interview with Bloomberg. China accounts for nearly a third of the increase, reaching $ 120 trillion from $ 7 trillion in 2000. The wealth of the United States has more than doubled – by $ 50 trillion – to reach 90,000. billions of dollars. Germany and France posted more modest growth of $ 14 trillion, while the UK grew by $ 7 trillion.
In the two leading countries, more than two-thirds of total wealth belongs to 10% of households, and their share is increasing. According to MGI estimates, 68% of the world’s wealth is found in real estate. As MGI notes, the increase in wealth over the past two decades has outpaced growth in global GDP. The reason for this is the rise in real estate prices, caused by falling interest rates.
This is all fraught with side effects, says MGI. Rising house prices could make home ownership unaffordable for many people and increase the risk of a financial crisis like the one that hit the United States in 2008, the institute said. China could face similar problems due to debt from developers like Evergrande.
The ideal solution would be to turn global wealth into more productive investments that increase global GDP, MGI stresses. But a “nightmare scenario” is also possible: a collapse in asset prices, destroying up to a third of the world’s wealth.
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