China will overtake the United States as the world's largest economy faster than previously expected as it successfully handles the coronavirus pandemic crisis better than Western countries, according to a report.
The Center for Economic and Business Research (CEBR) says it now expects the value of China's economy when measured in dollars to exceed the US by 2028, five years faster than expected last year.
In its annual report on the growth prospects of 193 countries, the UK-based agency said China had risen rapidly from the effects of Covid-19 and the economy would grow by 2% by 2020.
CEBR says China's rapid pandemic management with tight initial closures, and impaired long-term growth in Western countries means China's relative economic performance has improved.
As the US is expected to contract by 5% this year, China will close the gap with its biggest competitor, CEBR said.
Overall, gross domestic product (GDP) is projected to decline by 4.4% this year, the biggest one-year decline since the second world war.
Although America is likely to experience a strong post-pandemic recovery by 2021, its growth is expected to slow to 1.9% a year between 2022 and 2024, and then to 1.6% thereafter.
Chinese President Xi Jinping last month said that the economy is projected to double in 2035 under the five-year Plan of his government aimed at achieving ‘modern socialism’ within 15 years.
