The latest report from a think tank revealed that China will overtake the US to become the world’s largest economy in 2028, five years earlier than expected, primarily due to the contrasting economic recovery following the coronavirus outbreak.
On Saturday, the Centre for Economics and Business Research said in its annual report “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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It further added that the pandemic outbreak and the corresponding economic fallout have benefitted China. The report said that Beijing’s effective handling of the coronavirus outbreak and its early lockdown and hits to growth across Europe meant that the Asian nation’s economic performance has significantly improved.
Beijing looked for a 5.7 percent average economic growth from 2021-2025 before slowing down to 4.5 percent a year from 2026-2030. On the other hand, while the US economy is likely to rebound following the coronavirus fallout, its growth will remain to slow down to only 1.9 percent a year from 2022-24, and after that to 1.6 percent a year.
Meanwhile, until the 2030s, Japan is likely to remain the world’s third-biggest economy in terms of dollars. But after that, India is likely to take the spot, pushing a strong European nation, Germany, from fourth to fifth spot. The UK, which is currently the fifth biggest economy according to the thinktank would move to the sixth spot after 2024.
But despite the fallout because of Brexit, the British GDP is expected to nearly 23 percent higher than France’s by 2035. In the top global economies, Europe accounted for 19 percent, but that number is likely to fall to 12 percent or lower by the year 2035. Moreover, the report stated that the coronavirus’s impact on the economy was likely to show up in inflation rather than growth.
