The United States is ahead of China in the race for the world’s first economy – Kommersant
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The United States has strengthened its position in the ranking of the world’s top economies, writes Bloomberg. Over the past year, American GDP grew by 6.3% in nominal terms (that is, not adjusted for inflation), and China’s by 4.6%. As the agency notes, such indicators indicate that the American economy is coping with the consequences of the COVID-19 pandemic more effectively than the Chinese one.
Former head of the China division of the International Monetary Fund, Eswar Prasad, said that US economic success against the backdrop of China’s problems raises doubts about the ability of the Chinese economy to overtake the American one. “This is an amazing turn of fate,” Mr. Prasad added. Bloomberg notes that the positive financial results of the United States are also evidenced by the situation on the stock market. U.S. stocks hit record highs this week, while Chinese stocks struggled.
At the beginning of 2023, many analysts predicted a recession in the United States due to the Federal Reserve raising the key rate to combat record inflation in decades, Bloomberg points out. At the same time, experts predicted a rapid recovery for China, as the country’s authorities decided to open the economy after strict Covid restrictions. However, in 2023, despite the measures taken, China’s foreign trade volume declined and youth unemployment rose sharply.
On December 13, 2023, the US Federal Reserve for the third time in a row abstained from raising the rate and kept it at 5.25–5.5%. Against this background, the Dow Jones index rose by 1.4%, reaching a record value of 37,090 points. Leading American indices have recently regularly updated historical highs. Over three days in January 2024, indices rose between 2.7% and 4%, led by the fast-growing technology sector.
Read more in the Kommersant article. “Your own Dow Jones”.
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