Signal China recorded the largest fall in wealth growth as investment, inflation, and property all slowed

Summary

MGI finds that among the seven large economies it decomposes, China experienced the largest drop in household wealth growth in 2025. Three forces moved together: net investment rates fell, inflation hovered around zero, and asset values, above all in property, kept falling for yet another year. Because inflation was so low, rising prices did little to prop up nominal wealth, unlike in economies where inflation lifted asset values. The report places this within China's partial balance sheet reset, in which falling property values have pushed wealth down relative to GDP. That contrasts with the United States and Japan, where valuation gains lifted wealth growth.