Pandemic effect: US economy set to overtake China for first time since 1976

According to reports, the US economy is set to overtake China for the first time since 1976 amid the coronavirus pandemic.

Bloomberg reported that the US economy is expected to grow 2.8%, with China’s gross domestic product (GDP) expected to grow just 2% this year.

China has consistently beaten the United States in GDP growth for decades, even as President Xi has warned officials that China’s growth must be sustained to beat the United States.

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The Bloomberg report said China’s coronavirus lockdown means it will fall behind the United States. The International Monetary Fund (IMF) previously projected that China would overtake the United States as the world’s largest economy by the 2030s.

However, amid the pandemic, China’s growth has been hampered by Xi’s regime sticking to a “zero Covid” policy, with authorities locking down cities with just a few cases of the virus. The Chinese president ordered officials to pursue the “zero-Covid” policy “without hesitation”.

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International agencies had previously criticized China’s lockdown approach as WHO chief Tedros Adhanom Ghebreyesus said China’s “zero-Covid” policy was unsustainable.

China has been fighting the virus outbreak since last September after the Delta variant began infecting large numbers of people. Chinese authorities quarantined millions of people in cities at the time, in January after the Omicron variant began to spread, Chinese authorities again implemented the “zero-Covid” policy.

Shanghai has been in lockdown for more than a month with restrictions eased even as authorities said no new cases of the virus had been reported.

Health officials undertook several rounds of mass testing in China’s financial hub amid a food shortage as major factories remained closed, leading to greater strains on the supply chain.

(With agency contributions)


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