TLTP
\nLONDON
\nChina will overtake the US as the world\u2019s biggest economy before the end of the decade after outperforming its rival during the global Covid-19 pandemic, according to a report.
\nThe Centre for Economics and Business Research (CBER) said that it now expected the value of China\u2019s economy when measured in dollars to exceed that of the US by 2028, half a decade sooner than it expected a year ago.
\nIn its annual league table of the growth prospects of 193 countries, the UK-based consultancy group said China had bounced back quickly from the effects of Covid-19 and would grow by 2% in 2020, as the one major global economy to expand.
\nWith the US expected to contract by 5% this year, China will narrow the gap with its biggest rival, the CEBR said. Overall, global gross domestic product is forecast to decline by 4.4% this year, in the biggest one-year fall since the second world war.
\nDouglas McWilliams, the CEBR\u2019s deputy chairman, said: \u201cThe big news in this forecast is the speed of growth of the Chinese economy. We expect it to become an upper-income economy during the current five-year plan period (2020-25). And we expect it to overtake the US a full five years earlier than we did a year ago.
\n\u201cOther Asian economies are also shooting up the league table. One lesson for western policymakers, who have performed relatively badly during the pandemic, is that they need to pay much more attention to what is happening in Asia rather than simply looking at each other.\u201d
\nChina\u2019s share of global GDP has increased from 3.6% in 2000 to 17.8% in 2019 and will continue to grow, the CEBR said. It would pass the per capita threshold of $12,536 (\u00a39,215) to become a high-income country by 2023.
\nThe CEBR said departure from the EU would not prevent the UK \u2013 likely to be the world\u2019s fifth biggest economy in 2020 \u2013 from being one of the better performing economies in the next 15 years.
\n\u201cWe expect the trend rate of growth for the UK to be 4.0% annually from 2021-25 and 1.8% annually from 2026-30 and 1.8% annually from 2031-35,\u201d the consultancy said.
\n\u201cThe UK is forecast to be overtaken by India in 2024 but otherwise holds its place in the league table to 2025. By 2035, UK GDP in dollars is forecast to be 40% more than that of France, its long-standing rival and neighbour.\u201d
\nIndia, after overtaking France and the UK last year, had fallen back behind the UK as a result of a sharp fall in the value of the rupee. But the dip will be short-lived, with the world\u2019s second most populous country on course to be its third biggest economy by 2035<\/p>\n","protected":false},"excerpt":{"rendered":"
TLTP LONDON China will overtake the US as the world\u2019s biggest economy before the end of the decade after outperforming its rival during the global Covid-19 pandemic, according to a report. The Centre for Economics and Business Research (CBER) said that it now expected the value of China\u2019s economy when measured in dollars to exceed […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-164553","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n