China will become the world’s largest economy in 2028 due to the rapid recovery from the pandemic

The Chinese economy will outperform the United States five years earlier than expected, after going through the coronavirus pandemic better than the West, according to the Center for Business and Economic Research (CEBR), Bloomberg reports.

In a report released Saturday, the Center for Economic and Business Research says the world’s first and second-largest economies will swap seats, based on Gross Domestic Product expressed in dollars in 2028, five years earlier than estimated. with one year, transmits Agerpres.

In addition, CEBR has calculated that China could become a high-income economy (which by the World Bank definition means an economy with a per capita gross national income of more than $ 12,356) starting in 2023. As evidence of the power of Asia India could also move up the rankings, becoming the world’s third-largest economy by the end of this decade.

“For some time, a predominant theme of the world economy has been the economic and soft power struggle between the United States and China. The COVID-19 pandemic and its economic consequences have certainly tipped the balance in favor of China.”, appreciază Center for Economic and Business Research.

According to the CEBR, the way in which China has successfully handled the pandemic, with a strict quarantine at the beginning, as well as the blows given to the long-term growth of Western economies, means that China’s relative economic performance has improved. According to CEBR estimates, China is expected to register an average economic growth rate of 5.7% per year in the 2021-2025 period, after which it will slow to a growth of 4.5% per year in the 2026 period- 2030. By contrast, the US, although it will have a strong post-pandemic recovery in 2021, its growth rate will slow to 1.9% per annum between 2022 and 2024, after which it will slow further to 1.6 % per year. .

Japan will remain the world’s third-largest economy, in dollars, until the early 2030s, when it will be overtaken by India, meaning that Germany will drop from fourth to fifth place. The UK, currently the world’s fifth-largest economy according to the CEBR, will drop to sixth place from 2024.