US economic growth could rival China’s for the first time in decades

After Biden stimulus, US economic growth could rival China's for the first time in decades
Biden administration enacted a $1.9 trillion stimulus package that is far larger than many thought possible just a few months ago. Source: Getty Images
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Daily US Times: China’s economy has grown much faster than America’s for decades. That trend of economic growth is likely to be broken in 2021 as the United States’ recovery from the coronavirus pandemic gains momentum.

Economists are swiftly upgrading their US economic growth forecasts as coronavirus vaccinations accelerate and after Biden administration enacted a $1.9 trillion stimulus package that is far larger than many thought possible just a few months ago.

Goldman Sachs is calling for 2021 US GDP growth of 6.9%, the fastest since the year of 1984. Morgan Stanley is even more bullish, predicting 7.3% economic growth. That would surpass China’s humble target of 6%. More importantly, these Wall Street estimates for the US’ pace are not far from the 8.4% consensus forecast for China among economists polled by Refinitiv.

All of this means that US GDP growth could rival or perhaps even surpass China’s GDP growth in decades. This would be a remarkable achievement because the US is a much more mature economy — and was blown away by China’s explosive growth out of the Great Recession.

Joe Brusuelas, chief economist at RSM, said: “We’re going to be in the ballpark — and I think the US will most likely be the leader.”

For average Americans, this optimism signals a better prospects for prosperity and stronger jobs market after a dreadful 2020. Morgan Stanley expects the United States unemployment rate will drop below 5% by the end of this year and below 4% by the end of 2022.
China has beat the US every year since 1976

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