China to Overtake US as World’s Largest Economy by 2028 - 5 Year Earlier Than Forecasts, Says Report

China to Overtake US as World’s Largest Economy by 2028 - 5 Year Earlier Than Forecasts, Says Report

The United Kingdom-based Centre for Economics and Business Research (CEBR) reports that China's "skillful" management of COVID-19 will boost its relative growth compared to the U.S. and that will allow it to economically overtake America much faster than previously forecasted.

China will overtake the U.S. to become the world's largest economy by 2028, five years earlier than previously forecast, the report finds.

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“Thanks to a strict early response, China has managed to avoid re-introducing the harshest pandemic-fighting measures after the first wave and, unlike most other advanced economies, has avoided a recession in 2020. We expect the United States’ share of global GDP to decline from 2021 onwards, and for the country to eventually be overtaken by China as the world’s largest economy,” writes CEBR.

“We now expect this to happen in 2028, five years sooner than in the previous edition of the WELT. Following a strong post-pandemic rebound in 2021, we expect the trend rate of growth of the US to be 1.9% annually from 2022-24 and 1.6% annually for the rest of the forecast horizon,” according to the report.

The U.S. economy, by contrast, has been hit hard by the world's worst coronavirus epidemic in terms of sheer numbers. More than 330,000 people have died in the US and there have been some 18.5 million confirmed cases.

The U.S. continues to struggle with managing the virus -- one in 1,000 Americans have died from the virus. Rhode Island now ranks 6th in the United States for number of cases per 100,000 residents, according to Covid ActNow.

In the U.S., the economic damage has been cushioned by monetary policy and a huge fiscal stimulus, but political disagreements over a new stimulus package could leave around 14 million Americans without unemployment benefit payments in the new year.

On Saturday night at approximately 11 pm, President Donald Trump wrote in a series of tweets, “$2000 + $2000 plus other family members. Not $600. Remember, it was China’s fault!”

Although China was the first country hit by Covid-19, it controlled the disease through swift and extremely strict action, meaning it did not need to repeat economically paralyzing lockdowns as European countries have done.

As a result, unlike other major economies, it has avoided an economic recession in 2020 and is in fact estimated to see growth of 2% this year.