China Set to Topple U.S. as Biggest Economy
China set to topple US biggest economy
China’s economic ascent is accelerating barely a year after its first coronavirus lockdowns, as its success in controlling Covid-19 allows it to boost its share of global trade and investment. The world’s second-largest economy is set on Monday to report gross domestic product increased 2.1% in 2020, the only major economy to have avoided a contraction, according to a Bloomberg survey of economics.
And it’s not just a blip that’ll reverse once other large economies begin to recover as vaccines are rolled out. Economists expect China’s GDP will expand 8.2% this year, continuing to outpace global peers including the U.S. China is now on course to pass the U.S. as the biggest economy in 2028, said Homi Kharas, deputy director for the global economy and development program at the Brookings Institute.
If its local virus control success continues, the pandemic could help China “solidify its position in the global economy,” said Ka Zeng, director of Asian studies at the University of Arkansas. U.S. and European companies are likely to focus more on China due to the “potential for the country to be the only large source of growth in the post-pandemic world.” The record jump in China’s global GDP.