RT.com
21 May 2022, 23:43 GMT+10
Beijing's economy is lagging behind due to lingering Covid-19 outbreaks
US economic growth is set to outpace China this year for the first time since 1976, Bloomberg reported on Friday, citing economists.
According to the publication, the lingering effects of the Covid-19 pandemic and recurring outbreaks throughout the country mean that its economic growth will stall, despite Beijing's fiscal, monetary and regulatory stimulus measures. Analysts polled by the news outlet predict that the globe's largest economy will grow by only 2% this year, far lower than China's official growth target of "around 5.5%" for 2022.
"Even in an upside scenario, with an unlikely relaxation of the Covid-zero stance, a 5% expansion - let alone the government's 5.5% target - looks out of reach," they said, referring to President Xi Jinping's Covid-zero policy, which demands curbs on activity when new virus outbreaks happen.
The US economy, however, is expected to grow by around 2.8%, despite multiple-year-high inflation, driven largely by high levels of hiring and consumer spending.
The two countries have long been rivals, with US President Joe Biden having built his economic agenda partly around the goal of showing that democracies can be more economically competitive than China's "authoritarian model," as Bloomberg described it. In the fourth quarter of last year compared with the same period in 2020, the US has already raised its GDP by 5.5%, while China only managed 4% growth. However, according to analysts, Beijing still has options to change the situation.
"China still has policy options... At this juncture, a timely and decisive rollout of real stimulus measures is really critical to bring growth back on track," Citigroup Inc. economists Xiangrong Yu and Xiaowen Jin wrote in a note to the news outlet this week.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Herald Globe news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Herald Globe.
More InformationISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
VENICE, Italy: Over the weekend, hundreds of protesters marched through the narrow streets of Venice to voice their opposition to billionaire...
PARIS, France: France is taking stronger steps to reduce smoking. A new health rule announced on Saturday will soon ban smoking in...
WASHINGTON, DC - U.S. President Donald Trump on Tuesday claimed Elon Musk's success has been built on government subsidies. Without...
EVERGLADES, Florida: Over the weekend, a diverse coalition of environmental activists, Native American leaders, and residents gathered...
BEIJING, China: China's national soccer team may struggle to stir excitement, but its humanoid robots are drawing cheers — and not...
Jaipur (Rajasthan) [India], July 2 (ANI): The much-anticipated LEGEN-Z T10 League will be played from August 7 to August 13 at the...
New Delhi [India], July 2 (ANI): The Board of Control for Cricket in India (BCCI) Ombudsman Justice (Retd) Arun Mishra has directed...
Mumbai (Maharashtra) [India], July 2 (ANI): Actor-comedian Kapil Sharma is back with another episode of 'The Great Indian Kapil Show,'...
Birmingham [UK], July 2 (ANI): Former head coach and cricketer Ravi Shastri didn't mince his words while expressing his discontent...
Birmingham [UK], July 2 (ANI): Indian and England players were wearing a black armband before the start of play on Day 1 of the second...
New Delhi [India], July 2 (ANI): Olympians Anjum Moudgil (also world championship silver medalist) and Saurabh Chaudhary and world...