McKinsey: Global households got $40 trillion richer in 2025 as the paper wealth economy swelled to $1.8 quadrillion

Global household wealth hit a record $570 trillion in 2025, according to new data from the McKinsey Global Institute. Households added $40 trillion over the year, a 7.3% increase that outpaced historical growth averages. This brings the world's total balance sheet to nearly $1.8 quadrillion.

This growth is largely a paper phenomenon rather than a result of physical economic expansion. Only 20% of the new wealth comes from real capital investment. The vast majority of gains stem from inflated equity values, with stocks accounting for 57% of new wealth compared to just 15% from real estate. This marks a sharp departure from the previous two decades where real estate drove the bulk of household asset gains.

The United States stands at the center of this shift. American equity values reached 2.4 times corporate net assets in 2025, almost double the historical average. A significant portion of this growth is linked to a handful of AI-focused mega-cap stocks. The U.S. now holds nearly half of all corporate equity value among major global economies, making the performance of American corporate earnings a primary driver of global wealth stability.

Meanwhile, China has followed a different path. While U.S. wealth is tied to rising equity multiples, China’s balance sheet growth relies on debt accumulation. Corporate debt in China reached 80% of real assets, far higher than the global norm, even as property values declined. McKinsey notes these divergent strategies create an imbalance, suggesting the world economy may eventually face either higher inflation, higher productivity requirements, or a correction in asset prices.