The United States has lost its distinction as the world’s wealthiest country, with China now taking its place. According to Bloomberg, who originally broke the story, the shift in the global wealth leaderboard reported in a research from McKinsey & Co., which stated that China’s worth increased from $7 trillion in 2000 to $120 trillion in 2020. During the same period, the US economy grew to about $90 trillion, falling just shy of the top rank.
China’s ascension to the top of the leaderboard accounted for about a third of the entire growth in global wealth from $156 trillion to $514 trillion over the same time. China’s economic progress is supposed to have accelerated when it joined the World Commerce Organisation (WTO), an intergovernmental agency that oversees international trade. Countries might profit from WTO participation because it assists countries in adopting and implementing international trade norms in developing markets.
While this is a significant triumph, it is not one that enjoyed by the entire country, since more than two-thirds of the country’s wealth is concentrated in only 10% of the wealthiest households. The United States, which presently ranked second in the world in terms of wealth, has the same percentage.
While economic growth delivers a solid return, some patterns in expanding net worth might render nations prone to collapse. China’s success will be one to monitor in the coming years.
Experts need to keep a weather eye on the horizon for signs of a similar financial event, as the infamous 2008 US collapse triggered a breakdown in the housing economy, and with rising property prices being partly responsible for China’s meteoric rise, experts will need to keep a weather eye on the horizon for signs of a similar financial event.
Did you hear about Elon Musk’s bluff called by the United Nations World Food Program? The entire globe is waiting to see if he will pay up. Let us say you have $1,000, and someone offers you $20 in exchange for saving tens of millions of people from starvation. Outside of a feeling of kindness for your fellow people, you do not get much out of it, but hey, it is just $20. So, what exactly do you do?