A new report by the think tank of the United Kingdom has stated that the economic response from China to combat the economic fall out of the novel coronavirus pandemic has created a situation that it can now become the largest economy of the world even before the ned of the current decade.
The Chinese economy will be able to surpass the economy of the United States by the year 2028 as compared to the earlier estimates of becoming the largest economy of the world by 2033, said the report from the Centre for Economics and Business Research (CEBR).
“We expect the United States’ share of global GDP to decline from 2021 onwards, and for the country to eventually be overtaken by China as the world’s largest economy,” the annual report from the CEBR released on Saturday claimed.
“We now expect this to happen in 2028, five years sooner than in the previous edition of the WELT,” the report said in reference to the think tank’s World Economic League Table, which measures economic performance of countries.
The difference between the responses to the economic impact of the pandemic implemented between China and the United States and the recovery that followed the responses had been attributed to be the reason for this shortening of the time line of the Chinese economy overtaking the US economy.
The “skillful management of the pandemic” by China was praised in the report and the report noted that the early lockdown to prevent the spread of the Covid-19 infections had holed China to keep the number of infections and death sunder control.
While adding that there would be a strong recovery of the US economy from the pandemic in the forthcoming years, the report warned that the expected growth in the US economy would get slowed down to between 1.9 per cent and 1.6 per cent over the years that follow the recovery from the pandemic.
On in comparison, starting 2021, it is expected that the Chinese economy will grow at an average rate of 5.7 per cent a year till 2025. The growth rate of the Chinese economy is expected to slow down slightly to about 4.5 per cent on the average between 2026 and 2030.
It is expected that Japan will continue to remain the third largest economy of the world till about the early years of the 2030s and is likely to be replaced by India as the third largest economy while Germany will likely be pushed to being the fifth largest economy of the world.
(Adapted from DW.com)