Daily US Times: Chinese economy will overtake the US to become the world’s largest economy by 2028, five years earlier than previously predicted, a report from the UK-based Centre for Economics and Business Research (CEBR) says.
The report said China’s “skillful” management of Covid-19 would boost its relative growth compared to the US and Europe in coming years.
Meanwhile, India is tipped to become the third-largest economy in the world by 2030.
The Economics and Business Research (CEBR) releases its economic league table every year on 26 December.
Although China was the first country hit by coronavirus, it controlled the outbreak through swift and extremely strict action, meaning it did not need to repeat economically paralysing strict lockdowns as European countries have done. As a result Chinese economy did not suffer as much as other countries.
As a result, unlike other western and European major economies, China has avoided an economic recession in 2020 and is in fact estimated to see growth of 2% this year.
The US economy, by contrast, has been hit hard by the world’s worst Covid-19 pandemic in terms of sheer numbers. More than 330,000 people have died in the country and there have been some 18.5 million confirmed cases.
The economic damage has been cushioned by a huge fiscal stimulus and monetary policy, but political disagreements over a new stimulus package could leave around 14 million Americans without unemployment benefit payments in the new year.
The CEBR report says: “For some time, an overarching theme of global economics has been the economic and soft power struggle between the United States and China.”
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