2021-2022 China overtaking U.S.A. and an emerging threat of recession

In the year of the Corona pandemic, it often looked as if the world came to a standstill. But a so-called communist state which has taken on more a hyper-capitalist attitude managed to get the “Chinese disease” under control and got her economy to continue to blossom. Though it might China take a little longer than previously thought to overtake the United States as the No.1 economy, a report showed on Sunday it is looking around the corner to do this.

British consultancy Cebr predicted China will become the world’s top economy in dollar terms in 2030, two years later than forecast in last year’s World Economic League Table report. But this should not give us a wrong impression of the advance that China is making in any case. It is very clear that it is doing everything it can to conquer the world. And this should prepare us to protect ourselves against this rising menace.

At the same time there is the other globol, India, which looks set to overtake France the coming year and then Britain in 2023 to regain its place as the world’s sixth biggest economy, Cebr said.

“The important issue for the 2020s is how the world economies cope with inflation, which has now reached 6.8% in the U.S.,”

said Cebr deputy chairman Douglas McWilliams.

Many countries shall have to find a solution for bringing their budget under control.
Almost all countries have seen huge increases in state spending to keep their heads above water during this Corona crisis and to provide citizens with a secure income to support their households.
But with all these support measures, many countries will be left with a big hangover in 2022 that they will have to take care of urgently.

The report showed Germany was on track to overtake Japan in terms of economic output in 2033. But before we reach that stadium it can well be, if there is no modest adjustment to the tiller to bring the non-transitory elements under control, that we shall have to brace ourselves for a recession in 2023 or 2024.