At the end of 2023, the United States again took the position of the first economy in the world and was significantly ahead of China in terms of GDP, Bloomberg reports. Many international stock market analysts along with financiers expected a sharp rise in China, which, however, did not happen.
American GDP grew by 6.3% in nominal terms, while China’s grew by only 4.6%. When calculating nominal GDP indicators, the inflation factor is not taken into account, experts emphasize. High economic growth rates in the United States have allowed Washington to seriously break away from China. Beijing hoped to impose a financial struggle on the Americans, but domestic political problems associated with the assertion of the sole power of Chinese President Xi Jinping, the COVID-19 pandemic, military maneuvers in the Taiwan Strait and protests in Hong Kong had a negative impact on the economy. In addition, experts attribute China’s poor results to instability within the Communist Party (CCP) amid the lifting of term limits for the head of the CPC as chairman of the country.
According to Bloomberg analysts, the Chinese economy will face “secular stagnation” if current trends continue unchanged. “This is a stunning reversal of fortune,” concluded former IMF China chief Eswar Prasad. He currently works as a senior professor of international trade policy at Cornell University (New York, USA). The economist noted that this development of events is surprising for most analysts.
Previously, experts expected a recession in the United States due to the Federal Reserve raising the key rate in order to overcome record inflation. Against this background, according to analysts, China could become a driver for the global economy after the end of the pandemic and the lifting of anti-epidemiological restrictions.
The competition for global dominance in international relations continues between the United States and China. Beijing claims to be a new superpower, while the United States and its allies are trying to prevent China from growing its influence on global politics and the economy.
Source: Rosbalt
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
