US is moving away from China in the fight to have the world’s largest economy, writes Bloomberg.
By the end of 2023, US GDP increased by 6.3% in nominal terms (not adjusted for inflation), while China increased by 4.6%. Agency analysts state that it is clear that the American economy has emerged from the epidemic in a better position than the Chinese economy.
Economic indicators are also reflected in the stock markets of both countries. While US stocks are trading at record highs in January 2024, Chinese stocks are experiencing a massive crash.
Securities in China and Hong Kong have lost nearly $6 trillion in value over the past four years. China’s main domestic market index CSI 300 fell to its lowest level in five years.
“The pandemic has hidden many of China’s deep and structural weaknesses. They are out now. These problems may take decades to resolve. “It all depends on China’s ability to reform,” said Josh Lipsky, a former IMF adviser and director of the Atlantic Council’s Center for Geoeconomics.
The expert concluded that all conversations about China becoming the world’s largest economy are now postponed indefinitely.
Recently India for the first time ahead Hong Kong by stock market capitalization.
Previously Japanese stock index augmented It reached a 33-year record.