by It is common for politicians and pundit types to speculate on when or whether China’s economy will pass the US economy as the world’s largest. The latest episode to cross my path was a column by David Wallace in the New York Times.There is little reason for this sort of speculation. China is already the world’s largest economy, its economy is more than 20 percent larger than the US economy, according to the IMF. Furthermore, it is growing considerably more rapidly (assuming they don’t continue their zero COVID-19 policy forever), so it is projected to be more than a third larger than the US economy by the end of the decade....Of course, the story is different in terms of per capita wealth and income. The Chinese economy is larger than the US economy largely for the reason that China has
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It is common for politicians and pundit types to speculate on when or whether China’s economy will pass the US economy as the world’s largest. The latest episode to cross my path was a column by David Wallace in the New York Times.
There is little reason for this sort of speculation. China is already the world’s largest economy, its economy is more than 20 percent larger than the US economy, according to the IMF. Furthermore, it is growing considerably more rapidly (assuming they don’t continue their zero COVID-19 policy forever), so it is projected to be more than a third larger than the US economy by the end of the decade....
Of course, the story is different in terms of per capita wealth and income. The Chinese economy is larger than the US economy largely for the reason that China has been playing catch-up and its population is several times as large the US population so even with modest output the economy is greater. China's aim now is to equal and eventually surpass the West in distributed prosperity through a socio-economic system that China regards as superior to the West's. But on a global scale, China is still a relatively poor country over all, with still a significant rural peasantry.
Real-World Economics Review BlogChina is the world’s largest economy: Get over it