The Rise and Rise of the Global Balance Sheet: How Productively Are We Using Our Wealth?

McKinsey & Company

Rebecca Anderson

Research

32 Pages

McKinsey Global Institute examines how global wealth has expanded faster than economic output using a “global balance sheet” framework. It finds net worth has tripled since 2000, largely driven by real estate and asset prices rather than productive investment, raising sustainability concerns.

Key Takeaways

Wealth Growth Disconnect: Global net worth tripled from 2000 to 2020, while GDP lagged, with assets reaching nearly 6x GDP versus about 4x historically.
Real Estate Dominance: About 66% of global net worth sits in real estate, while productive assets account for only ~20%, limiting long-term growth potential.
Debt Fueled Expansion: For every $1 of net new investment, liabilities rose nearly $4, with about $2 coming from debt, signaling leverage-driven wealth creation.
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