China to overtake the U.S. as world’s largest economy | Daily News

China to overtake the U.S. as world’s largest economy

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.

That puts China’s economy at only $6.2 trillion behind the U.S., down from $7.1 trillion in 2019.

“This (divergence in growth) is consistent with our view that the pandemic has been a much larger blow to the US economy than China’s economy,” (www.cnbc.com)