McKinsey report shows global households added $40 trillion in wealth in 2025

The McKinsey Global Institute’s “Global Balance Sheet 2026” report finds that household net worth worldwide rose by a record $40 trillion in 2025, lifting total net worth to $570 trillion and expanding the global asset balance sheet to nearly $1.8 quadrillion. The growth rate of 7.3% outpaced the long‑term average of 5.9% and was driven almost entirely by rising equity prices rather than real‑economy investment; roughly 20% of the new wealth came from actual capital formation while about 58% stemmed from paper gains in equities.

U.S. equity valuations were a primary engine, with equity values 2.4 times corporate net assets and the “Magnificent Seven” AI‑linked mega‑cap stocks contributing more than half of S&P 500 market‑cap growth. The United States now accounts for nearly half of global corporate equity value. In contrast, China’s balance‑sheet expansion relied on debt, with corporate debt hitting 80% of real assets (1.7 × GDP) and falling property prices eroding household wealth there. Several other major economies, including France and Germany, saw real‑estate price declines. The report notably makes no direct mention of crypto assets.