U.S. May REPLACE China In Shocking Turn – First Time In Decades
(FeaturedNews.com) – The US economy doesn’t seem to be doing too great right now. Inflation has many industries struggling, and consumers are suffering at the supermarket and the gas pump. Still, according to a recent Bloomberg report, experts project the United States could surpass China in economic growth for the first time in decades.
The report stated that, thanks to COVID-19 shutdowns and other issues, China expects to see only a 2% economic growth in 2022. In contrast, the United States expects its economy to grow by 2.8%. China has been ahead of the US in economic growth since 1976, making this a historical prediction.
China Is Holding Itself Back
The policy of Chinese President Xi Jinping of approaching COVID-19 with zero tolerance led to numerous excessive lockdowns that crippled the nation. This policy requires a complete shutdown in any area, with no exceptions, when someone tests positive for the virus.
When the nation goes into a lockdown, everything stops. Businesses can’t run. People can’t work. The economy grinds to a halt, and as more and more areas of China go under the orders, the economy only worsens.
In the United States, most people are moving forward despite the pandemic. There was one period when the country locked down, but it didn’t last very long in many areas. People have retained the ability to make purchases, and businesses have kept running. The economy may be taking a hard hit from inflation, but it is still creeping along.
According to Newsmax, the US surpassing China in economic growth might play into the political sphere. The Biden Administration is already working to make moves to help strengthen the United States against the rival nation.
China started publishing its goals for growth in the 1990s. But Xi will fail to meet this year’s target of 5.5%, which officials set prior to the COVID-19 outbreaks in the nation. Eurizon SLJ Capital CEO Stephen Jen said the country probably set an ambitious goal for 2021 as a political move against the US. Still, it was one of the lowest targets they’ve ever had.
According to Bloomberg, experts feel China could still bounce back, but it would likely require implementing stimulus measures.
With the United States and China in a constant battle to outperform each other, these predictions may send Chinese officials into overdrive trying to fix the situation. How it ends up remains up in the air, but it’s a sure bet both Biden and Xi will each work as hard as possible to ensure their country ends up on top.
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