London, UK (CWBN)_ The Centre for Economics and Business Research (CEBR – UK) claimed that owing to China’s “skilful” tactics over the course of the Covid-19 pandemic would support economic growth exceeding that of the US and Europe by 2028. Moreover, India is also set to become the third largest economy.
The CEBR reported said that, “For some time, an overarching theme of global economics has been the economic and soft power struggle between the United States and China. The Covid-19 pandemic and corresponding economic fallout have certainly tipped this rivalry in China’s favour.”
Despite being the epicentre of the Covid-19 outbreak, China’s rapid and stringent responses to control the spread of the virus, enabled it to avoid nationwide lockdowns, which continue to plague many parts of the world with economic recessions. China is expected to hit a growth factor of 2 percent this year.
Deputy Chairman of CEBR told BBC that, while benefiting from an early response to the pandemic, China boosted its economy by using aggressive policy decisions, particularly with regard to advanced manufacturing.
The US has been near crippled by the outbreak, recording over 18.8 million cases and 330,000 fatalities thus far. Just yesterday, it was reported that 91,922 new cases were identified amid 1,129 fatalities.
The economic fallout in the US has be largely avoided using billions of dollars pumped in using stimulus packages. Nonetheless, unemployment in the US has grown exponentially while many workers face furlough schemes.
However, between 2022 and 2024, the US economy is expected to reach a “post pandemic rebound” of 1.9 percent annually before slowing down yet again to 1.6 percent, as opposed to China, which is projected to reach a growth rate of about 5.7 percent annually till 2025 before slowing down to 4.5 percent.
