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This Country Becomes Richest Nation In The World

This Country Becomes Richest Nation In The World

“We are now wealthier than we have ever been,” a new study by McKinsey & Co has examined the new net wealth of the world. The report reveals that the world’s wealth has skyrocketed between the years 2000 to 2020 taking the figure to $514 trillion. This is three times the earlier estimation which was $156 trillion. With this, the wealth of ten countries has increased too including China which is now the richest nation in the world.

China And Other 9 Richest Nations In The World

China’s wealth accounts for one-third percentage of the total world wealth that is $120 trillion. In the year 2000, China’s total wealth was only $7 trillion.

richest nation 2021

U.S is the second richest nation with $90 trillion followed by Germany, France, the U.K., Canada, Australia, Japan, Mexico, and Sweden.

The study says most of the income comes from real estate i.e. 68 % including land, houses, and other buildings on the Earth. The rest of the amount comes from Inventories, Infrastructure, Intangibles assets, and Machinery & Equipment.

Also Read: Who Are The 5 Indian-Origin Women In 2021 Forbes List Of ‘America’s Richest Self Made Women’?

Side Effects Of Sudden Rise In Wealth

richest nation in the world

via:financialtimes

This might sound that financial conditions across the world are improving with each year but McKinsey’s report doesn’t reveal the same. It says interest rates of property are declining which is the main reason for an increase in world wealth. But, global gross domestic product across the world has not improved much.

This may lead to financial crisis and challenges for homebuyers in the near future as estimated by the report. The experts fear that China may face the same conditions faced by the U.S in 2008 which was the result of low-interest rates and other factors leading to the Great Recession.

Also Read: Who Is Falguni Nayar- India’s Richest Self-Made Female Billionaire

If these countries could find a way to improve global GDP then we can prevent the crisis, suggest report.

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