In a twist unforeseen at the start of the year, the U.S. economy has defied expectations, outpacing China’s growth trajectory.
However, the situation has reversed remarkably. China’s growth slowed to 0.8% in Q2, down from an inflated 2.2% in Q1 following the easing of lockdown restrictions.
Conversely, China’s outlook dims as Barclays economists revise down Q3 and Q4 GDP growth projections to 2.8%, and lower the 2023 forecast to 4.5%.
Despite predictions by Goldman Sachs of China’s GDP surpassing the U.S. by 2035, doubts loom. Experts like Ilaria Mazzocco acknowledge China’s resilience but note that double-digit growth is history.
Yet, a word of caution is essential. Overemphasis on the current narrative must be avoided. Adjustments in expectations could restore balance.