Article at a glance:
Understanding the evolution of the world's capital markets is essential for financial institutions seeking to shape them, for policy makers who regulate them, for investors seeking to profit from them, and for executives raising capital in them. To develop such an understanding, the McKinsey Global Institute researched the world's capital markets in-depth and created a comprehensive database of the financial assets of more than 100 countries since 1980.
The take-away
The global financial stock, which now totals more than $118 trillion, could increase to $200 trillion by 2010. It has grown faster than the world's gross domestic product, indicating that financial markets are becoming deeper and more liquid. Most of this growth has come from a rapid expansion of debt—a trend with both positive and negative implications.
This collection of exhibits examines the composition and growth of the global financial stock by region, asset class, and GDP.