A new report published by a British think tank says that Beijing’s response to the coronavirus epidemic paved the way for China to become the world’s largest economy by the end of the decade. Details below.
According to dw.com, the UK think tank said that Beijing “is now expected to overtake the US by 2028, as opposed to 2033”. They expect that Washington’s share in the global GDP would decrease from 2021 on. The Centre for Economics and Business Research (CEBR) released its annual report on Saturday.
The previous relevant calculation done by WELT (World Economic League Table) said that the turning point would be no sooner than in 2033. The reason behind the change is the difference between Beijing’s and Washington’s reaction to the coronavirus epidemic and how they would like to recover their economies from the depression caused by the virus. The report says that
China did a “skillful management of the pandemic,”
where an early lockdown kept the numbers under control.
“The report added that the US would also see a strong post-pandemic rebound in the coming year, but its growth would slow down to 1.9 pc and 1.6 pc over the years that follow. China, on the other hand, is headed for an average growth rate of 5.7 pc a year from 2021 till 2025. Between 2026 and 2030, it is
expected to slow down to 4.5 pc a year,”
Interestingly, Japan will retain its position as the world’s third-largest economy until the early 2030s. Then India is expected to arrive in the third-place, pushing Germany to the fifth spot.