China could overtake the U.S. as the world’s largest economy earlier than expected

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New chart shows China could overtake the U.S. as the world’s largest economy earlier than expected

• The latest GDP reports show that of the U.S. fell by 2.3% in 2020, while China’s grew by 2.3% amid the coronavirus pandemic.
  
• The divergence means China will likely overtake the U.S. as the world’s largest economy a few years earlier than anticipated, economists said.
  
• However, they pointed out the two countries have different economic structures, and China’s per capita GDP is still far below that of the U.S. 
  

BEIJING — China is set to overtake the United States as the world’s largest economy a few years earlier than anticipated due to the coronavirus pandemic, analysts said.


The U.S. reported last week that gross domestic product in 2020 contracted by 2.3% to $20.93 trillion in current-dollar terms, based on a preliminary government estimate.

In contrast, China said its GDP expanded by 2.3% last year to 101.6 trillion yuan. That’s about $14.7 trillion, based on an average exchange rate of 6.9 yuan per U.S. dollar, according to Wind Information data.

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