U.S. Economy Likely to Outgrow China’s Due to Contrast in Pandemic Responses

[casual]

US will register higher GDP growth numbers because it's base is so low. Remember this is the same quarter where the US GDP growth tanked 31.2% last year.

 

[AViet]

The US, a nation with only a quarter of the population compared to China, produced more wealth on the scale of trillions of dollars than China over the last decade.

China doesn’t stand a chance over the long term, because the US is absurdly innovative and productive. China has the scale, but the US is going to outsmart and out-innovate you over time.

Is the situation in the US so desperate that you US guys now have to resort to bragging and self-flattering, just like the Indian?

You are still big and great, you do not need to be so delusional. Richer than China, I can understand. But outsmart them???

What world are you living in, when everything indicates otherwise? It is genetics, something cannot be changed.

 

[Mista]

U.S. gross domestic product rose 12.2% in the second quarter of this year from a year earlier, outpacing China’s 7.9% gain.

That's just because of lower baseline in the US last year. It's similar in Singapore.

Singapore economy grows 14.7% in Q2, full-year GDP growth forecast upgraded to 6-7%

SINGAPORE: Singapore's economy grew by 14.7 per cent year-on-year in the second quarter of 2021, faster than the 1.5 per cent growth in the previous quarter, the Ministry of Trade and Industry (MTI) said on Wednesday (Aug 11). The ministry also upgraded the GDP growth forecast for 2021 to 6 to...

www.channelnewsasia.com

SINGAPORE: Singapore's economy grew by 14.7 per cent year-on-year in the second quarter of 2021, faster than the 1.5 per cent growth in the previous quarter, the Ministry of Trade and Industry (MTI) said on Wednesday (Aug 11).
...
"LOW BASE"
The strong growth in the second quarter was largely due to the "low base" in the same period last year when GDP fell by 13.3 per cent due to the COVID-19 "circuit breaker" and a sharp drop in external demand brought on by the pandemic, said MTI.

Taking into account the GDP performance in the first quarter of 2021, the Singapore economy expanded by 7.7 per cent on a year-on-year basis in the first half of 2021.

 

[beijingwalker]

When most countries try to compare up to US, now US is trying to compare up to China.

 

[Ahmet Pasha]

The U.S. and China are trading places in the economic growth race.

U.S. gross domestic product rose 12.2% in the second quarter of this year from a year earlier, outpacing China’s 7.9% gain.

The American edge should continue for at least the next few quarters, many economists say. That would be the first sustained period since at least 1990 in which the U.S. economy grew faster than China’s.

In the short term, the reversal reflects the difference in the two nations’ responses to the Covid-19 pandemic. The coronavirus circulated earlier in China and the country’s leaders quickly imposed quarantines in the pandemic’s epicenter of Wuhan and elsewhere. Chinese GDP fell by 6.7% in the first quarter of 2020 from a year earlier, while the U.S. GDP registered a small gain.
China’s aggressive response initially restored the country’s growth to a pace faster than America’s, which faced the economic brunt of the pandemic later and largely eschewed mandatory quarantines.

Although the U.S. economy took longer to right itself than China’s, the U.S. poured far more resources into a recovery. A combination of vaccinations, massive fiscal stimulus and near-zero interest rates pushed the U.S. ahead of China in GDP growth. The two countries’ responses to the Delta variant of the coronavirus may once again greatly affect their growth prospects.


Government aid helped U.S. households accumulate $2.6 trillion in what Moody’s Analytics calls excess household savings—savings that exceed what would have been anticipated before the pandemic. That is nearly seven times as much as in China.

Moody’s forecasts that U.S. GDP growth will outstrip China’s for five consecutive quarters, starting in the second quarter of 2021. Capital Economics and Oxford Economics see a similar trend though they think it will last three quarters.

These are year-over-year comparisons because China doesn’t report quarter-vs.-quarter comparisons that are annualized and seasonally adjusted; the U.S. economy grew at a 6.5% annual rate in the second quarter. Economists’ estimates of Chinese quarter-vs.-quarter results vary widely but still tell a similar story of U.S. growth now outpacing China’s.

Andy Rothman, a China specialist at Matthews Asia, views the growth reversal as a blip along a road leading to China eventually becoming the world’s largest economy. The recent U.S. results are “like getting so excited about the Washington Nationals winning five in a row but they’re still five games below .500,” he said.


With four times as many people in China and decades of policy encouraging growth through savings and investment, it makes sense for China to pull ahead of the U.S. Through 1870, economist Angus Maddison estimated, China’s large population made it the largest economy in the world, though it was soon eclipsed by industrialized nations which were far more productive per person.

Since China started to open up its economy to the world in the 1970s, it has greatly narrowed the GDP gap with the U.S. Oxford Economics figures China will become No. 1 in 2030; Moody’s figures the crossover will occur in 2038. The wide difference in estimates shows the imprecision of the calculation.

Who ranks No. 1 isn’t simply a matter of bragging rights. The world’s largest economy sets business and consumer trends globally; it also has more resources to pour into technology and project power overseas.

The recent reversal in growth delays somewhat China’s prospective economic ascendancy. Beijing also faces significant problems that could push the date back further, economists say, including a crackdown on the private sector, steep increases in government debt and an aging population.


China’s labor force—those ages 15 to 59—peaked in 2014, and has been shrinking since then, including a 0.5% decline in 2020, according to Capital Economics, which expects China’s GDP growth to slow to about 2% by 2030. That is roughly the same as the expected U.S. long-term growth rate.

Chinese leader Xi Jinping “appears to be working to regain China’s place in history before demographic decline sets in,” said Arvind Subramanian, an economist at the Peterson Institute for International Economics.

The U.S. also has plenty of long-term challenges to growth, including a sharply divided political system, mounting bills for healthcare and slow productivity growth.

But the GDP race provides just one way to view relative economic strength. Derek Scissors, an American Enterprise Institute economist, says that GDP, a gauge of national output, doesn’t accurately measure power. Wealth does. Aircraft carriers and overseas investments are paid out of a country’s wealth, not its GDP, he says.


On that score, China has much further to go to catch the U.S. Between 2011 and 2021 China closed the GDP gap with the U.S. by $2 trillion, according to International Monetary Fund estimates.

But during that same period, America’s lead in wealth increased by $13.5 trillion, according to Credit Suisse estimates. Chinese wealth grew faster on average than America’s but that hasn’t been fast enough to narrow the dollar total.

“It’s the wealth of nations, not the production of nations that matters,” said Mr. Scissors.

https://www.wsj.com/articles/u-s-ec...to-contrast-in-pandemic-responses-11629036000

Tell me what does it feel like to be on the loosing side?

 

[mqur1963]

all li

Wow. US is on a roll. For the first time in a long time US is leaving China in the dust.

ALL LIE

 

[Han Patriot]

The US, a nation with only a quarter of the population compared to China, produced more wealth on the scale of trillions of dollars than China over the last decade.

China doesn’t stand a chance over the long term, because the US is absurdly innovative and productive. China has the scale, but the US is going to outsmart and out-innovate you over time.

Keep printing money while Delta spreads

 

[Han Patriot]

The US, a nation with only a quarter of the population compared to China, produced more wealth on the scale of trillions of dollars than China over the last decade.

China doesn’t stand a chance over the long term, because the US is absurdly innovative and productive. China has the scale, but the US is going to outsmart and out-innovate you over time.

Keep printing money while Delta spreads

 

[Beast]

American are good with propaganda article to self delude themselves. Take their talk and article just like a comedy.

These are the top 10 countries for pandemic preparedness

The topic was thrust into the spotlight in 2014 when an Ebola outbreak devastated parts of West Africa, killing more than 10,000 people.

www.weforum.org

If you can trust American, pig will fly too. Just ask the Afghan.

 

[retaxis]

USSR fell few years after defeat in afghanistan. Same will happen to Amerikkka too

 

[Yongpeng Sun-Tastaufen]

USSR fell few years after defeat in afghanistan. Same will happen to Amerikkka too

US will become minority white and weak.