China Overtakes US as the World's Richest Nation

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China is now the richest nation of the world, according to the latest report by McKinsey & Co, Bloomberg reported.

While its numbers showed that global wealth grew by three times in the last 20 years, the report says that China led the way in that growth and surged ahead of the United States to attain the number one spot on the list of the world's richest countries.

The national balance sheets of ten countries that represented 60 percent of world income were analysed.

Global net worth increased to $514 trillion in 2020, from $156 trillion in 2000. "We are now wealthier than we have ever been," according to Jan Mischke, who works for the McKinsey Global Institute in Zurich.

The report, however, also highlighted the massive inequality in wealth in the world's top two richest countries.

In both China and the US, more than 67 percent of wealth is owned by the richest 10 percent of households.

Additionally, that proportion of wealth ownership is showing an upward trend.

The report also warns that, despite what the numbers are showing, China's economy risks being overwhelmed by property debt.

One way to avoid this crisis, not just in China but worldwide, would be to ensure productive investments that contribute to global GDP.

Otherwise, if asset prices plummet, then as much as 33 percent of global wealth could be wiped out.

(With inputs from Bloomberg)