The world economy after pandemic is completely different than envisioned earlier. The economies have shattered and the impact would be long term. According to the new research by the Centre of Economic and Business Research, UK, China would be benefitted the most.
China was originally poised to take over the US by 2033. However, with stronger currency now, China is set to go past the US to become the most valued economy of the world by 2028.
China has experienced a comeback growth rate of 2% after the pandemic. The US economy is expected to slump by 5%. This would make things easier for China. The overall global gross domestic product is set to fall by 4% this year. The highest decline since the Second World War.
Douglas McWilliams, the Chairman of CEBR said,
“The big news in this forecast is the speed of growth of the Chinese economy. We expect it to become an upper-income economy during the current five-year plan period (2020-25). And we expect it to overtake the US a full five years earlier than we did a year ago.
China is also expected to become a high-income country by 2023. The per capita is to cross $12,536 to become a high-income country. However, China would be far behind the US in this matter. The US has a $63000 average per capita, and the UK has around $39,000.
The other Asian countries will do better as well in the world economy after the pandemic.
India is going to topple UK, Germany, and Japan to become the third most valued economy by 2035. India toppled the UK last year, but the sharp fall in Rupee has taken the second-most populous country behind the UK at the 5th place again. According to CEBR, India would take over the UK by 2023 again.
The pandemic has changed the dynamics of the world economy and it would have a long-standing impact.
The list is expected to look like the following by 2035.
China, US, India, Japan, Germany, UK, France