China’s economy is expected to lag behind the US for the first time in decades

Bloomberg quoted economists as saying, growth US economy is forecast to surpass China this year for the first time since 1976.

The lingering effects of the COVID-19 pandemic and outbreaks and resurgence across the country mean China’s economic growth will stall, despite fiscal stimulus, according to Bloomberg. , currency and regulation of Beijing.

Analysts polled by Bloomberg predict that China’s economy will grow just 2% this year, well below Beijing’s official growth target of “about 5.5%” for the year. 2022.

Even in an upward scenario, the 5% growth target – let alone the government’s 5.5% target – looks out of reach, according to analysts.

Meanwhile, the US economy is expected to grow by around 2.8%, despite multi-year high inflation, largely driven by consumer spending.

China and the US have long been competitors in terms of economic growth. According to Bloomberg, US President Joe Biden has built its economic agenda in part around the goal of showing that democracies can be more economically competitive than China’s economic model. In the fourth quarter of 2021 compared with the same period in 2020, the US increased GDP by 5.5%, while China grew only 4%.

However, according to economists Xiangrong Yu and Xiaowen Jin of Citigroup, China There are still options to change the situation. “At this point, the timely and decisive implementation of stimulus measures is really important to get growth back on track,” said two Citigroup economists.