China to surpass US to be largest economy by 2028

China will surpass the US to become the world's largest economy by 2028, five times earlier than previously forecasted, due to the COVID-19 pandemic, a statement has discovered recently. The Centre for Economics and Business Research (CEBR), a UK-based think tank, stated in its annual World Economic League Table released on Saturday that one of the results of the global health crisis as been "to redistribute economic force with Asia doing best and Europe worst". China's "skilful control of the pandemic" and the long-term result the pandemic will have on Western growth means China's "relative performance has changed."

"We now think that the Chinese market in dollar terms will overtake the US economy in 2028, a full five years earlier than we created last year," the report stateD.

It notes for instance, that authorities reacted "vigorously" to the COVID-19 crisis, thus inflicting less harm on the economy. As a result, while most Western economies are expected to record negative growth for the year, China is forecast to record a 2 per cent increase rate. It is then expected to grow by an annual 5.7 per cent between 2021-205 and 4.5 per cent annually from 2026 to 2030 and then 3.9 per cent the following five years. In contrast, the US is predicted to grow by an annual 1.9 per cent from 2022 to 2024 and then by 1.6 per cent following a "strong post-pandemic rebound" next year. "For some time, an overarching theme of global business has been the economic and soft power conflict between the United States and China. The Covid-19 pandemic and comparing economic fallout have certainly tipped this rivalry in China’s favour," the report says. The US is the world's most impacted country having lost more than 330,000 lives to the pandemic and read nearly 19 million infections since the beginning of the outbreak, according to a tally by Johns Hopkins University.

China to surpass US to be largest economy by 2028

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