America Passes China Economically For First Time Since The 1970s

(PresidentialHill.com)- According to economic forecasts, China’s economic growth this year may be lower than that of the United States for the first time since 1976 due to coronavirus lockdowns and President Xi Jinping’s strict COVID Zero policy. According to a reported estimate released on Friday, China’s GDP is predicted to grow by 2% this year, while the US economy is expected to grow by 2.8 percent.

According to research, the impact of Beijing’s monetary and fiscal stimulus measures is being hampered by Xi’s COVID policy which forces shutdowns when virus outbreaks occur. Consumer spending and hiring in the United States remain robust despite rising inflation.

Business media reports claim that while the median prediction for China’s GDP growth in 2022 is still over 4%, the country’s full-year growth would fall behind the US for the first time since 1976 when China was still recovering from the Cultural Revolution.

Since then, China’s economy has developed at a quicker rate while its per-capita GDP has shrunk. On both sides, the announcement might have political ramifications. According to reports, US President Joe Biden is urging Congress to enact a legislative package to boost the country’s defenses against China.

Media reports show President Biden has previously claimed credit for the US economy exceeding China’s, stating in January that America’s GDP expanded faster than China’s for the first time in 20 years.

China’s President  Xi is set to win a historic third term as the Communist Party’s leader, but a growth rate of 2% falls short of the Chinese government’s declared 5.5 percent objective for the year. Chinese officials established the 5.5 percent target before the extensive lockdowns first began in Shanghai. Chinese media show that China began announcing its economic goals in the 1990s. Since then, the country has come in well below its anticipated goal.

Stephen Jen, CEO of Eurizon SLJ Capital, suggests politics may have had a role in the setting of a target that already appeared ambitious before the current pandemic-related steps. According to his study written earlier this month, Jen claimed the key reason for the ambitious growth objective was that it was deliberately planted by the ‘pro-growth’ faction in Beijing to restrict future lock-downs and create a better climate for the private sector to prosper.

Meanwhile, Citigroup Inc. analysts stated this week that China might still recover but that timely and decisive implementation of meaningful stimulus measures is required.