{"id":26547,"date":"2023-03-14T00:11:00","date_gmt":"2023-03-14T04:11:00","guid":{"rendered":"https:\/\/www.investorsradar.com\/?p=26547"},"modified":"2023-10-13T00:56:01","modified_gmt":"2023-10-13T04:56:01","slug":"chinas-economy-will-not-overtake-the-us-until-2060-if-ever","status":"publish","type":"post","link":"http:\/\/www.investorsradar.com\/chinas-economy-will-not-overtake-the-us-until-2060-if-ever\/","title":{"rendered":"China\u2019s economy will not overtake the USA until 2060 if ever"},"content":{"rendered":"\n
China’s Economic Slowdown: A Reality Check<\/strong><\/strong><\/p>\n\n\n\n As China enters the third term of Xi Jinping’s presidency, the goal is to make China a moderately developed country in the next decade. This means that the economy<\/a> should expand at a rate of about 5%. However, underlying trends such as poor demographics, high debt and declining productivity growth suggest that the country’s overall growth potential is about half that rate.<\/p>\n\n\n\n One of the biggest challenges facing China is its declining population. China’s working-age population has been shrinking since 2015, and is projected to continue to shrink in the coming decades. This will make it difficult for China to maintain its high economic growth rates.<\/p>\n\n\n\n Another challenge facing China is its high debt levels. China’s total debt is now over 275% of GDP, which is much higher than any other major economy. This high debt level makes China vulnerable to a financial crisis.<\/p>\n\n\n\n Finally, China’s productivity growth has been slowing down in recent years. This is due to a number of factors, including the aging population, rising wages, and increasing competition from other countries.<\/p>\n\n\n\n Given these challenges, it is unlikely that China will be able to achieve its goal of 5% GDP growth in the coming decade. Instead, China’s growth rate is more likely to be closer to 2.5%.<\/p>\n\n\n\n