The US and China Now Have More Household Wealth Than the Rest of the World

The US is the foremost global superpower in the world, but in spite of the fact that this is the case China has been making a lot of headway and that has allowed the nation’s citizens to catch up in terms of wealth. China’s GDP has been seeing a massive increase for quite a few years now, and it won’t be long before it eclipses the US which is a success that the Chinese government has been coveting and working tirelessly towards.

With all of that having been said and now out of the way, it is important to note that GDP is not the only way to measure how much wealth a nation has. The total household wealth is also a useful metric because of the fact that this is the sort of thing that could potentially end up indicating how rich the average person in that country is.

It should come as no surprise that the US tops this list, with a combined household wealth of about $145 trillion. That means that the US holds about 31.5% of the household wealth of the entire world. China comes in second with a little over $85 trillion, which indicates that 18.5% of the world’s wealth is now in the ownership of Chinese people with all things having been considered and taken into account.

Interestingly, the share of global household wealth in the US is higher than its share of global GDP, while China’s is quite similar. The US has a 24% share of global GDP whereas China has 19%, and this might indicate that the US is underperforming or that its citizens are not investing back into the country as much as Chinese people.

Another thing to note here is that Asia has now surpassed Europe in terms of overall household wealth share. China has driven much of this change, as has India which now has over $14 trillion in total household wealth. Japan is also contributing with its over $25 trillion in household wealth, and South Korea is also pulling its own weight with a little over $10 trillion.

H/T: VisualCapitalist

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by Zia Muhammad via Digital Information World