US Growth Seen Outpacing China's for First Time Since 1976 [Business News Network (BNN) (Canada)]
Citigroup, Inc. (C)
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Source: Business News Network
The world's second-largest economy will grow just 2% this year, Bloomberg Economics's Chang Shu and Eric Zhu wrote in a report Thursday. By comparison, US gross domestic product will increase 2.8% this year, Bloomberg Economics predicts. While Beijing is applying fiscal, monetary and regulatory stimulus measures, the impact is being blunted by President Xi Jinping's Covid Zero policy, which requires strict curbs on activity when virus outbreaks occur. The US, while struggling to cope with high inflation, is still being propelled by strong hiring and consumer spending. The Bloomberg Economics call is on the bearish end of the spectrum, with the median forecast for China's 2022 GDP growth still over 4%. If Shu and Zhu have it right, this year would be the first time that China's full-year growth pace has lagged behind that of its rival since 1976, when China was emerging from the tumultuous decade of the Cultural Revolution, World Bank data show. Since the “reform and opening up”
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