Reuters reports that one think tank believes that, as a result of the coronavirus, China is now expected to have the world’s biggest economy even sooner than previously expected.
The think tank that reached this conclusion is the Centre for Economics and Business Research (CEBR).
On its website, CEBR says that it runs “economic indicators . . . underpinned by strong academic foundations which, combined with practical experience, enables us to make academic strength economics digestible to business and Government.” These “economic indicators” are said to be followed by the European Union, the Bank of England, and others.
CEBR just published its annual report on Saturday, and that’s where it predicts that China’s economy will outstrip the U.S.’ five years sooner than previously expected.
“For some time, an overarching theme of global economics has been the economic and soft power struggle between the United States and China,” the reports reads. “The COVID-19 pandemic and corresponding economic fallout have certainly tipped this rivalry in China’s favor.”
China is now anticipated by CEBR to have economic growth of 5.7 percent a year for 2021 through 2025 and of 4.5 percent a year from 2026 to 2030.
The United States, on the other hand, is expected to have a strong 2021, but then it is expected to have economic growth of 1.9 percent per year from 2022 to 2024 and 1.6 percent a year from 2025 to 2030.
CEBR did the calculations, and it has found that the Chinese economy is now expected to overtake America’s economy by 2028, which is five years sooner than previously expected.
That might be on the high side
It is unclear whether CEBR took into account the possibility of America being led by the administration of Joe Biden over at least the next four years.
As we know, President Donald Trump and his administration have been tough on China. Given what we have seen from Biden during his more than four decades in Washington D.C., there is reason to believe that he will go in the opposite direction.
That’s not even to mention the domestic economic policies that Biden plans to implement, such as his green energy plan.
Communist China is on the rise, and that’s bad news for the world.