According to a research report published by the research wing of McKinsey & Co, China has dethroned the US to become the world’s richest country.
As per the report, the total global wealth witnessed a 300% increase in the past 20 years from $156 trillion in 2000 to $514 trillion in 2020.
33% of the rise in global wealth during this period is contributed by just China alone. China’s wealth which stood at $7 trillion in 2000 has increased manifold to $120 trillion in 2020.
The national balance sheets of ten countries were analyzed in the world which collectively accounted for more than 60 percent of the world’s income. The countries in the report included are China, the US, Germany, France, the UK, Japan, Sweden, Mexico, Canada, and Australia.
Richest Countries in the World in terms of Net Worth
US net worth rose to almost $90 trillion in the same period. Of the world’s two biggest global economies US and China, 66% of the wealth is concentrated in the hands of 10 percent of the richest households. One of the interesting facts in the report says that around 68 percent of the global net worth is stored in real estate.
The stupendous rise in the net worth of these countries has been led by the exponential rise in the prices of real estate, making the net worth outstrip the increase in the global gross domestic product (GDP).
Here is the complete list of the Top 10 Richest Countries in the World as of 2023. Check out!
|Rank||Country||Net Worth in US Dollars|
|2||United States||$50 trillion|
|5||United Kingdom||$7 trillion|
China is not only the world’s most populous nation but also ranks at the top on the list of the richest nations in the world. China, officially known as the People’s Republic of China is spread in five geographical time zones, having 14 borders.
During the last four decades, China has progressively opened the doors of its economy that led to growth in economic development and standard of living. The government undertook reforms like a gradual phaseout of collectivized agriculture, industry and implemented greater flexibility for market prices.
As a result, foreign and domestic trade and investment started showing impressive results. China’s industrial policy encourages domestic manufacturing which paved the path as the world’s number one exporter. Even though China has many advantages it faces significant challenges like an aging population and degradation of the environment.
2. United States
The US is the second richest country in the world with a net worth of $50 trillion. The US is the engine of the world’s growth and it ranks third in the world as per size and population. After China, it is the second richest country in the world.
The United States economy is relatively open and facilitates business investment and foreign direct investment. US currency dollar is the world’s reserve currency which makes it feasible to have a large external national debt. It is also the world’s dominant geopolitical power. The U.S. economy is a global tech leader and known for its innovation in many industries.
Germany is the second-most populous country in Europe which is officially known as the Federal Republic of Germany. Germany is the third wealthiest nation in the world.
Germany’s workforce is highly skilled and it exports vehicles, machinery, chemicals, and other goods to the rest of the world. Germany is facing challenges on multiple fronts like demographic challenges, low fertility rate, and high levels of immigration.
France, known for its wines and sophisticated cuisine is the fourth richest country in the world. Paris, the capital city is popular for its fashion houses, classical art museums, and monuments.
France’s economy has many private and semiprivate businesses in all sectors. However, government involvement is high in important sectors like defense and electrical power generation.
5. United Kingdom
England, Scotland, Wales, and Northern Ireland are the four countries in the United Kingdom, which is ranked at fifth place on the list of the wealthiest nations in the world.
The U.K. economy is dependent on the service-oriented sector, especially in the areas of finance, insurance, and business services. Post the resolution of Brexit, the nation’s trade relationship with continental Europe has been greatly complicated.
Canada is the world’s second-largest country in terms of total area after Russia. Canada ranks sixth in the list of the world’s richest nations.
Canada not only has the world’s third-largest proven oil reserves but also vibrant manufacturing and service sectors. Canada has free trade relationship with the United States and 75% of its exports are headed to US every year.
Australia is the largest country in Oceania which is officially known as the Commonwealth of Australia. It is the sixth world’s largest country in terms of area and seventh richest in the world.
Australia has free trade arrangements with many countries around the Asia-Pacific Rim. The country has vast availability of natural resources like coal, natural gas, iron ore, and gold.
Japan is the eleventh most populous nation in the world and the eighth richest country. Japan’s economy has scarce natural resources and relies on energy imports.
Japan has built a strong manufacturing economy through strong cooperation between government and industry. Japan is now witnessing growth in recent years after losing the decade of the 1990s and also the impact of the global Great Recession.
Mexico known officially as the United Mexican States is the tenth most populous country in the world at 9th position in our list of richest countries in the world.
In the last 30 years, Mexico has transformed into a manufacturing economy with free trade arrangements with countries like the United States, Canada, and 44 others.
Sweden is the largest country in Northern Europe and the fifth largest country in Europe. It is the fourth European nation to feature in the list of the richest countries in the world at tenth position.
Sweden’s economy is very competitive and the standard of living is pretty high. Sweden’s manufacturing economy is dependent on foreign exports like machinery, motor vehicles, and telecommunications.
So this was the list of 10 Richest countries in the world. Feel free to share your feedback in our comments section below!