Chinese Economy will soon overtake the US

Beijing, 27th December: Chinese economy will soon overtake the US economy due to the coronavirus pandemic.

According to reports, China will overtake the US to become the world’s largest economy by 2028, five years earlier than previously forecasted.

The UK-based Centre for Economics and Business Research (CEBR) has predicted that China’s “skilful” management of COVID-19 would boost its relative growth compared to the US and Europe in the coming years.

Meanwhile, it is also reported that India is soon to become the third-largest economy by 2030.

Every year on 26 December, the CEBR releases its economic league table every year.

Although China was the first country hit by COVID-19, it controlled the disease through swift and extremely strict action, meaning it did not need to repeat economically paralysing lockdowns as European countries have done.

As a result, China has avoided an economic recession in 2020 and is in fact estimated to see the growth of 2% this year.

On the other hand, the US economy has been hit hard by the world’s worst coronavirus pandemic in terms of sheer numbers. More than 330,000 people have died in the US and there have been some 18.5 million confirmed cases.

Political disagreements over a new stimulus package could leave around 14 million Americans without unemployment benefit payments in the new year.

The report says that after a strong post-pandemic rebound in 2021, the US economy will grow by about 1.9% annually from 2022-24 and then slow to 1.6% in the years after that.

By contrast, the Chinese economy is tipped to grow by 5.7% annually until 2025, and 4.5% annually from 2026-2030.

China’s share of the world economy has risen from just 3.6% in 2000 to 17.8% now and the country will become a “high-income economy” by 2023, the report says.

However, the average Chinese person will remain far poorer in financial terms than the average American even after China becomes the world’s biggest economy, given that China’s population is four times bigger.

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