The Chinese are wealthier than Europeans now

8 min read
The Chinese are wealthier than Europeans now

What is the richest country in the world?

As a result of China’s skyrocketing economic growth, the typical Chinese citizen today has a higher standard of living than their European counterparts.

When compared to the average person in Europe, an adult in China has a net worth of US$26,752 (AU$40,980), while the average person in Europe has a net worth of US$26,690 (AU$40,885)

The statistics for Europe take into account the entirety of the continent, which includes countries that are seen as being on the lower end of the economic spectrum.

The median wealth of a person living in Russia in 2021 was $6,379 U.S. dollars, whereas the wealth of a person living in China is around four times greater.

In the previous 20 years, the average wealth of people in China has increased by a factor of eight, going from $3,111 (US dollars) in the year 2000 to $26,690 (US dollars) in the year 2021. This rate of growth is quicker than it has been seen anywhere else on the planet.

Estimates place China’s nominal gross domestic product at between $14 and $19 trillion, making it the world’s second largest economy behind the United States.

On average, however, people in China are still a very long way behind their peers in the United States and Australia.

Who’s the richest in the world?

Meanwhile, Australians are the wealthiest people on the planet. This may be attributed, in large part, to the enormous increases in the cost of real estate as well as the mandatory savings required by superannuation.

The average adult in Australia has a net worth that is higher than any other adult in any other country on the planet, coming in at US$273,900 or A$419,577.

According to a research paper entitled the 2021 Global Wealth Report that was published earlier this week by the multinational banking conglomerate Credit Suisse, this is the case.

Following New Zealand with a personal fortune of US$231,260 (AU$354,258) was Belgium, which was in second place on the list. In Belgium, fifty percent of the population had personal wealth of more than US$267,890 (A$410,370).

The United States of America came in 18th place, despite having the largest economy in the world, with a median personal net worth of $93,270 (about AU142,876) per person.

The analysis discovered that, in the wake of the COVID-19 epidemic, the wealth gap has continued to increase internationally, with the wealthy becoming richer and the less well-off becoming poorer. This finding may not come as a complete surprise to some people.

This was nowhere more apparent than in New Zealand, where the average person’s wealth increased by US$57,920 (or A$88,725) over the course of just one year.

The average adult in Australia was able to amass an additional US$28,450 (or A$43,581) in wealth.

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What makes Australia rich

It is important to note that the authors of the research computed the median wealth by splitting the distribution of wealth into two equal groups, with half of the adults having wealth that is above the median and the other half having wealth that is below the median.

2021 was a record-breaking year for the real estate markets in both Australia and New Zealand, but prices have been going in the opposite direction ever since.

The report also included a measurement of average wealth, which was determined by dividing the total amount of wealth in each nation by the number of adults in that nation.

The fact that Australia did not come in first place in that regard is indicative of a wealth divide. The average wealth of Switzerland came in top place, coming in at US$696,600 (or A$1.067 million).

The United States of America came in second place with a total of $579,050 (A$887,025), and Hong Kong came in second place with a total of $552,930 (A$847013).

With a total of US$550,110 (A$842,693), Australia finished in fourth place.

The fact that the richest one percent of Australians possessed 21.8 percent of the country’s wealth in 2021 is one indicator that inequality exists in the country. The median wealth in Australia is significantly lower than the average wealth in the country.

According to research conducted by Credit Suisse in 2021, the total number of millionaires in the world reached 62.5 million by the end of the year. This represented a significant increase from the previous year’s figure of 58.5 million.

At the close of 2017, the total amount of wealth in the world reached US$458 trillion, which is equivalent to A$703 trillion. This represents a growth of 9.8 percent in comparison to the previous year.

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