At the beginning of 2023, economists' forecasts indicated that China would be the first in the economic race, but the opposite happened. Over the past year, the GDP of the United States has grown by 6.3% in nominal terms, and Chinese — by 4.6%. The nominal expression of GDP means that there are no adjustments for inflation.
According to the agency, this happened due to the fact that the American economy is emerging from the coronavirus pandemic in a better position than the Chinese economy. U.S. securities are trading much higher on the stock markets than Chinese ones.
Now experts warn of the threat of "secular stagnation" due to Xi Jinping's policies. They also suggest that China is unlikely to be able to overtake the US economy. In addition, China is now struggling with the worst deflation in the last quarter of a century and with a long-term crisis in the real estate market.
