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Home / Business / Report: China will surpass the United States to become the world’s largest economy by 2028

Report: China will surpass the United States to become the world’s largest economy by 2028



Starting from 2021-25, China is expected to grow at an average annual rate of 5.7%, and then slow to 4.5% per year from 2026-30.

Although the United States may rebound strongly after the 2021 pandemic, between 2022 and 2024, the United States’ annual growth rate will slow to 1.9% and then drop to 1.6%.

In dollar terms, Japan will remain the world's third-largest economy until it will be overtaken by India in the early 2030s, thereby dropping Germany from fourth to fifth.

The UK is currently the fifth largest economy as measured by CEBR, and will fall to sixth place from 2024.

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However, despite the blow to the EU single market in 2021, due to the UK’s leading position in the increasingly important digital economy, by 2035, the UK’s USD GDP forecast will still be 23% higher than that of France.

CEBR said that by 2020, Europe will account for 19% of the world’s top ten economies, but by 2035, this number will fall to 12%. If there is a sharp split between the EU and the UK, it will Lower it down.

The report also said that the impact of the pandemic on the global economy is likely to show up in higher inflation rather than slower growth.

It said: “We are seeing an economic cycle of rising interest rates in the mid-2020s.” This poses a challenge for governments that borrow heavily to deal with the COVID-19 crisis.

"But as we step into the 2030s, the underlying trend accelerated by this suggests that the world will be greener and more technology-based."

(Except for the title, this story has not been edited by NDTV staff, but is published through a joint feed.)



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