It is believed that China will take over the economic status of the US and become the world’s largest economic country by 2028. This will be a 5 years earlier success than the previous estimation due to the differences in recovery rate between the two countries regarding the COVID-19 pandemic. The Centre for Economic and Business has said in an annual conference on last week’s Saturday that the overarching globalized economic theme shows a subtle and power struggle between China and the US. However, the pandemic of Coronavirus has, in turn, acted as a boon corresponding to the growth of China’s economy and tippled in the country’s favor.
There can be an average economic growth of 5.7% a year from 2021-2025 and China’s skillful management of the pandemic by early lockdown will hit the growth in the West meant China’s relative economic performance. This report has been published according to the CEBR. The US might have a rebound on the post-pandemic basis in 2021 but there may be certain reductions of about 1.9% to 1.6% between 2022 to 2024. Japan would remain the world’s third-largest economic country in dollar terms until the 2030s when it can be overtaken by India and in this process pushing Germany’s rank from 4th to 5th.
The pandemic impact on the global economy will show up higher inflation not slower growth and a rise in the economic cycle in the mid-20s has become a challenge for governments to provide funds wherever possible to respond to the COVID-19 crisis. The UK is the fifth-largest in the economy currently can move to the 6th position by 2024. There has been a significant hit in 2021 towards the verge from the European Union’s single market and the British GDP in dollars can be estimated to be around 23% more than France’s by 2035.
In the list of top ten global economic countries, Europe holds around a 19% position. If there is a sudden and gradual breakdown between the EU and Britain, then this can get lowered further by 2035. In the World Economic League Table, the Centre for economics and business research has estimated that China is rightfully to become a high-income economic country by 2023. China has replaced the US as the engine of the Global Economy proving to be the largest contributor to economic growth pulling other small world economies in its way. Over the next five years between 2019-24, the International Monetary Fund has given the prediction that China will emerge with a new economic outlook.
Resolving this economic conflict between china and the US will become critical over the next few years given this pandemic situation that will always remain a favored advantage in responding to China’s global economy. As the Federal Reserve at the Centre, the US holds an important position in the epitome of global markets but about the economy, it is no, longer growing fast as the sole locomotive for the world economic train. On the other hand, China has been emerging as a global market with the most important drivers in the business market. It will always be an importer of raw materials and supplier of manufactured products with outward investment.
Since 2018, the US presence has posed many threats to China’s growing economy about shifting balance of economic power and improper trade practices. However, China’s role as a global economic locomotive with plural and liberal political system has further boosted its economy and power. Thus, to reduce this global crisis, the two countries need to coexist constructively to curb down this extended period of the global crisis in the economy. China has also become in due course of time the largest foreign holder of US and hence China’s emerging financial is still a raised concern among other countries in recent times.