The global economy is weak, but China is outstanding? Standard Chartered predicts that it will take only 10 years for China to surpass the United States

Home > Finance

The global economy is weak, but China is outstanding? Standard Chartered predicts that it will take only 10 years for China to surpass the United States

2019-01-22 17:12:56 196 ℃
The International Monetary Fund (IMF) has lowered its economic forecasts for 2019 and 2020 for the second time in three months, Reuters reported on Tuesday.

It is reported that due to the continuing global economic tension, the IMF has reduced the overall economic growth of developed and developing economies to 2% and 4.5% respectively in this year, and to 1.7% and 4.9% next year. In response, the IMF President explained at the press conference that after two years of robust expansion, the global economy is moving at a "slower than expected" pace, and the risks are higher than ever, "countries need to prepare for a serious slowdown".

Obviously, IMF's expectations for global economic growth in this year and next two years are not optimistic, but China's economy has still delivered a good result. China's gross domestic product (GDP) in 2018 exceeded 90 trillion yuan, an increase of 6.6% year-on-year at comparable prices, according to data released by the National Bureau of Statistics on the 21st. Although this growth rate is the lowest in recent years, China is still rapidly narrowing the economic gap between the world's largest economy and the global economic downturn.

According to the IMF's forecast, China's GDP will account for 16% of global GDP in 2018, while the United States'GDP will account for about 24%. In 2000, China accounted for less than 4% of GDP, while the United States accounted for 30%. However, as the share of the world's largest economy declines, China has caught up.

and earlier this month Standard Chartered Bank made an astonishing prediction that China would surpass the United States as the world's largest economy by 2020, based on purchasing power parity exchange rate and nominal GDP. Although Standard Chartered's calculation based on purchasing power parity (PPP) exchange rate is not the mainstream method, China's GDP can surpass that of the United States in about 10 years, even if it is based on the mainstream GDP calculation method.

It is not difficult to see that although the pace of global economic progress has slowed down, which has brought some challenges to China's economic growth, from the current achievements, China's economy is steadily advancing with its tenacious vitality, and the future is promising!