China Surpasses US to Become World’s Richest Nation

China, overtaking the United States in terms of growth, has now become the richest country of the world, according to the latest report by McKinsey & Co, Bloomberg reported.

It’s numbers showed that China’s global wealth grew by three times in the past 20 years, while the report says that China led the way in that growth and surged ahead of the US to attain the number one spot on the list of the world’s richest nations.

In the McKinsey & Co report, the national balance sheets of ten nations that represented 60 percent of world income were analyzed.

In 2020, China’s Global net worth increased to $514 trillion from $156 trillion in 2000. “We are now wealthier than we have ever been,” said Jan Mischke, who works for the McKinsey Global Institute in Switzerland’s Zurich.

However, the report also highlighted the massive inequality in wealth in the world’s top two richest nations.

Over 67 percent of the wealth in both China and the US is owned by the richest 10 percent of households.

That proportion of wealth ownership is additionally showing an upward trend.

Despite what the numbers are showing, the report further warned that China’s economy risks being overwhelmed by property debt.

Therefore, the report cites one way to avoid this crisis, not just in China but around the globe, would be to ensure productive investments that contribute to global GDP. And if the asset prices plummet, then nearly 33 percent of global wealth could be wiped out.

(Inputs from the Bloomberg)

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