China’s share of the world’s GDP when adjusted for PPP was around 8.1% in 2002, but 20 years later we are seeing a completely different picture. China now accounts for 18.8% of the world’s GDP, and both the US and the EU have seen a decrease of 4 and 5.1 percentage points respectively. The US now has a 15.8% share of the global economy, and the EU has just 14.8% which is a far cry from the unassailable dominance that they showed in decades prior.
The global recession will likely make the gap wider because of the fact that this is the sort of thing that could potentially end up bringing the economies of the US and the EU to a halt. China, on the other hand, is projected to continue showing modest growth rates which will allow it to cement its place as the world’s foremost super power.
China is not the only country that has been rising rapidly either. India managed to climb its way to an over 7% share of the world’s GDP, and while it is still short of China its growth rate will allow it to get closer to the US and the EU in terms of global GDP share.
The twin powers of China and India might create an entirely new economic paradigm with these two countries now vying for global dominance perhaps similarly to how the US and the Soviet Union were struggling against each other all throughout the 20th century.

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