According to the International Monetary Fund (IMF), US GDP growth will increase by 1% this year and by 1.2 % in 2023. In contrast, it is anticipated that Chinese GDP will expand by 3.2 percent in 2022 and by 4.4 percent in 2023.
China’s economy is the second largest in the world, totaling about US $17.7 trillion (114.4 trillion yuan) in 2021 when measured by nominal GDP. However, since 2016, Purchasing Power Parity (PPP) has shown China to have the world’s greatest economy.
When GDP is calculated using current US dollars, the US economy remains the greatest in the world. However, China is seen as quickly catching up in this category as well.
According to the International Monetary Fund, US GDP growth will increase by 1% this year and by 1.2 % in 2023. In contrast, it is anticipated that Chinese GDP will expand by 3.2 percent in 2022 and by 4.4 percent in 2023.
If the latest World Economic Outlook database of the International Monetary Fund’s (IMF) predictions holds true, China will eventually overtake the US in terms of economic power.
Despite the slowdown in Chinese development, the IMF’s projections show that China’s proportion of global GDP is anticipated to rise while the US’s part is predicted to keep declining in purchasing power parity (PPP) terms in foreign currencies.
In 2015, the Chinese economy made up 61 percent of the US economy, and this year, that percentage is predicted to rise to 81 percent. And if the International Monetary Fund’s (IMF) predictions come true, they will account for 93 percent of the US economy by 2027.
In 2015, the Chinese economy made up 61 percent of the US economy, and this year, that percentage is predicted to rise to 81 percent. And if the International Monetary Fund’s (IMF) predictions come true, they will account for 93 percent of the US economy by 2027.
By the middle of the century, China’s economy could be more than twice as large as America’s in terms of US dollars if it continued on a par with its current trajectory. Some others think China has the capacity to grow even faster, and if it does, by 2050 its economy might be staggeringly 4-5 times larger than America’s.
20 recent studies in total estimate that China’s economy might develop by an average of 5% per year or more until 2030 and by roughly 3.5-4% per year between 2020 and 2050.
The geopolitical implications of this abrupt shift are enormous since it will allow China to match US defence and innovation spending, in addition to opening up a sizable market where everyone will want to sell. Therefore, the US is constantly attempting to clip China’s wings in trade and technology because it is well aware of this.
The geopolitical implications of this abrupt shift are enormous since it will allow China to match US defence and innovation spending, in addition to opening up a sizable market where everyone will want to sell. Therefore, the US is constantly attempting to clip China’s wings in trade and technology because it is well aware of this.
Slowing exports due to the weak global economy will have an impact on Chinese growth, although this is anticipated to be at least partially compensated for by a drive for investment.
In fact, it is anticipated that between 2022 and 2025, China’s total investment as a proportion of GDP will stay quite high, which is above 44 percent, supporting development. It is to be seen if this is successful despite the difficulties facing the nation’s real estate market.
In fact, it is anticipated that between 2022 and 2025, China’s total investment as a proportion of GDP will stay quite high, which is above 44 percent, supporting development. It is to be seen if this is successful despite the difficulties facing the nation’s real estate market.
The US will see slower growth this year and next, but average inflation will decline from 8.1 percent this year to 3.5 percent next year as a result of monetary tightening.
The IMF predicts that US inflation will reach 2.3 percent by the end of 2023, and the US unemployment rate is predicted to increase due to monetary tightening from 3.7 percent this year to 4.6 percent next year and 5.4 percent in 2024.
However, it may be mentioned here that predicting long-term economic growth is a difficult task because the precise determinants of growth are unknown, and much is dependent on phenomena such as politics and technology, which are difficult to anticipate. Especially a country like China, given its history, immense size, and geopolitical standing.
edited and proofread by nikita sharma
