China's Chances of Overtaking US Economy 'Declining'

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The possibility of China overtaking the US as the world's biggest economy is declining, according to Cornell professor Eswar Prasad. Prasad stated that the US is likely to maintain its growth while China faces structural problems such as high public debt and a low birth rate. He mentioned that China's GDP overtaking that of the US is becoming less likely due to various fragilities, including undesirable demographics, a collapsing real estate market, deteriorating investor sentiment, and a lack of clarity over a new growth model. In contrast, the US economy has proven resilient, with a 3.3 percent growth rate in the last quarter of 2023 and the addition of over 350,000 jobs. China, on the other hand, has experienced a bumpy post-pandemic recovery due to factors such as an aging workforce, slower internal demand, and a crisis in the real estate sector.

#China #UsEconomy #EconomicGrowth #Gdp #StructuralProblems

https://www.newsweek.com/china-chances-overtaking-us-economy-declining-1866979