China will overtake the U.S. to become the world’s largest economy by 2028, five years earlier than previously expected, due to the COVID-19 pandemic, a report has found.
The Center for Economic and Industrial Research (CEBR), a UK-based think tank, said in its World Economic League Agenda published on Saturday that one of the effects of the global health crisis is “redistribution economic movement with Asia doing the best and Europe the worst ”.
The “skilled management of the pandemic of China” and the long-term impact of the pandemic on the growth of the West mean that “China’s relative performance has improved.”
“We now anticipate that the Chinese dollar economy will outperform the U.S. economy by 2028, a full 5 years earlier than we thought last year,” the report says.
He notes, for example, that authorities responded “vigorously” to the COVID-19 crisis, thereby causing less damage to the economy. As a result, while most Western economies are expected to record negative growth for the year, China is expected to record a 2 percent growth rate.
It is then expected to grow by 5.7 percent annually between 2021-205 and 4.5 percent annually from 2026 to 2030 and then 3.9 percent in the next five years.
In comparison, the U.S. is expected to grow 1.9 percent annually from 2022 to 2024 and then 1.6 percent after a “strong post-pandemic reversal” next year.
“For some time, the main theme of the global economy has been the economic and soft power struggle between the United States and China. The Covid-19 pandemic and the corresponding economic outcome have been the culprit in this conflict. in China’s favor, ”the report says.
The United States is the most influential country in the world, having lost more than 330,000 lives to the pandemic and recorded nearly 19 million diseases since the beginning of the revolution, which according to an account from Johns Hopkins University.