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China will overtake USA as the largest economy in 2028

2020-12-26T09:01:46.659Z

China is recovering from the corona crisis faster than other countries. British economists expect the country to replace the US as the largest economy five years earlier than expected.



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Flat panel display manufacturing in Wuhan, China: Largest economy in the world in 2028

Photo: CHINA DAILY / REUTERS

According to British economic experts, China will replace the USA as the world's largest economy as early as 2028 - five years earlier than previously expected.

As the Center for Economics and Business Research (CEBR) explains in its annual report published on Saturday, China is recovering from the corona crisis faster and stronger than the US.

"The Covid-19 pandemic and the associated economic effects favor China in this rivalry," wrote the economists.

The success of its own tough measures against Corona and the setbacks for long-term economic growth in the west have improved China's relative economic strength.

Last year China with a gross domestic product of 14.4 trillion dollars was still well behind the USA with 21.4 trillion dollars.

However, the CEBR predicts average annual growth of 5.7 percent for the People's Republic from 2021 to 2025, and of 4.5 percent for the years 2026 to 2030.

The USA would recover strongly from the pandemic in 2021, but would only grow 1.9 percent annually between 2022 and 2024, after that an average of 1.6 percent.

Japan is estimated to remain the world's third largest economy for the time being until it is overtaken by India in the early 2030s.

Germany will then slide to fifth place from its current fourth place.

Investment agreement between China and EU stalled

Meanwhile, the seven-year negotiations between China and the EU on an investment agreement have stalled in the final phase.

Although China has made new concessions in terms of market access for European companies, there are still many differences, as can be seen from the latest draft reported by the dpa news agency.

There is also resistance in the EU, while the future US administration of President-elect Joe Biden speaks out against Europeans going it alone in dealing with China.

The agreement is the most comprehensive attempt by the EU to date to put the economic relationship with the emerging, second-largest economy on a new footing.

It seeks more market access and better competitive conditions in the growth market.

After the USA, China is the Europeans' second most important trading partner.

Icon: The mirror

nck / Reuters / dpa

Source: spiegel

All business articles on 2020-12-26

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