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According to an analysis by the Center for Economics and Business Research, the United States, China, and India may take turns leading the world economy this century.
CEBR forecasts suggest that China could take the top spot as the world’s largest economy by gross domestic product (GDP) as early as 2037. The forecast also sees potentially strong growth in other countries such as India.
“The ranking of the world’s largest economies does not take into account things like living standards. By that measure, China simply cannot catch up with the United States,” said CEBR chief executive Nina Skero. .
Economists believe that a large and rapidly growing GDP can indicate a country’s military power, economic influence, and international importance.
“It’s naive to say it doesn’t matter,” said Mariana Mazzucato, an economics professor at University College London. “But our lives will not get better unless we solve the biggest problems of our time – around health, climate, digital and even AI – from a global perspective.”
Policymakers around the world are investing huge amounts of public funds to prepare for the social and environmental challenges that may arise in the future.
“I don’t want to contain China. I just want to make sure that our relationship with China is on the upswing,” President Joe Biden said at a press conference in September 2023.
Indian and Chinese leaders strengthened diplomatic ties with the United States in 2023. In particular, Chinese President Xi Jinping has sought to mend relations with the United States after a rocky start to the past decade.
Business confidence in China is weakening and the government continues to increase stimulus spending. According to CEBR, China was previously expected to overtake the US economy by 2028.
“The main problem facing China today is that the public, the private sector, and investors lack long-term confidence in the Chinese economy,” said Professor of Global Economics and Management at the MIT Sloan School of Management. Yashen Huang says.
Although population growth has stagnated in China and the United States since the beginning of the 21st century, India in particular has the potential to benefit from the so-called “demographic dividend,” where the working-age population is increasing in a well-capitalized business environment. .
“Demographics [in India] Rajiv Biswas, chief economist for Asia Pacific at S&P Global Market Intelligence, said: “Compared to other large Asian economies such as Japan, South Korea and China, India is still very young. It has the potential to grow.” ” he said in an interview with CNBC.
please look video Read above to learn more about the race to become the world’s largest economy.
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