Each country’s economic growth is measured by the gross domestic product (GDP). Negative or positive GDP indicates whether the economy is contracting or expanding. Combined economic output of all countries is global GDP. The contribution of the United States to global GDP is decreasing each year, while China’s economy is increasing.
Economists at the Conference Board say that China’s contribution to global GDP will surpass that of the US. That is, the Chinese economy will be more significant to the world than the US one. How is this possible you may ask?
To answer this question, let’s have a look at the period from 1970 to the forecast through 2025. In 1970, the US contributed 21.2% of the total global output of goods and services and this was until 2000. Since then, America’s share of the world’s economic output has contracted. In 2015, the US contributed 16.7% of the world’s economy. According to analysts’ estimates, it will fall to 14.9% by 2025.
In the meantime, China’s economy is expanding considerably. In 1970, China’s contribution to global GDP was 4.1%. In 2015, it rose to 15.6%. And it is seen to advance to 17.2% in 2025. According to some estimates, China’s economic contribution to the world’s economic output will exceed that of the US in 2018.
