Friday, January 15, 2021

China Set to Topple U.S. as Biggest Economy Sooner After Virus

China’s economic ascent is accelerating barely a year after its first coronavirus lockdowns, as its success in controlling Covid-19 allows it to boost its share of global trade and investment.

The world’s second-largest economy is set on Monday to report gross domestic product increased 2.1% in 2020, the only major economy to have avoided a contraction, according to a Bloomberg survey of economists.

That should ensure its share of the world economy rose at the fastest pace this century. Global output fell 4.2% last year, according to the World Bank, pushing China’s share of it to 14.5% at 2010 dollar prices -- two years earlier than expected.


China Set to Topple U.S. as Biggest Economy Sooner After Virus


Ahmed Fares said...

China's share of global GDP on a nominal basis:

The $88 Trillion World Economy in One Chart

China's share of global GDP on a purchasing power parity (PPP) basis, which is what really matters. As you can see, China is bigger:

Visualizing the Composition of the World Economy by GDP (PPP)

Tom Hickey said...

Yes, China's economy is largest for all practical purposes, PPP being more accurate than GDP according to the CIA. The difference between the US is not absolute but relative, that is, per capita. China is still a relatively "poor" country based on per capita income and wealth. However, from the POV of national power, absolute size counts, since the basis of military strength is industrial production capability and technology. The US is still somewhat ahead relatively here but China is quickly closing the gap and will surpass the US soon if the US can't had that off. Which is shy war is on the table policy-wise.