The United States and China have long entered the race for global economic supremacy. These two largest economies have been struggling for the first place in this ranking, striving to become the dominant power of the world. In the meantime, the European economy enjoys the steady third place. Even despite the coronavirus crisis, it continues to firmly hold onto its position.
Europe is lagging behind the US and China. Its economy is recovering at a slower pace, owing mainly to the reintroduction of tough anti-virus restrictions. In this situation, many European countries risk to face a new economic downturn. Moreover, given the problems with mass vaccination, a rebound in the local economy could be delayed indefinitely.
"China is already back above pre-pandemic levels and, on our projections, the US will be by the end of 2021. For the euro zone, it’ll be the end of 2022," chief global economist at HSBC Holdings Plc Janet Henry said.
Apart from that, the European economy is coming under pressure from political uncertainty. Italian Prime Minister Giuseppe Conte's decision to resign amid sky-high public debt in the country has become a wake-up call for the entire region.
The International Monetary Fund has revised its previous economic projections for the euro area downwards. This year, Eurozone GDP is expected to grow by only 4.2%. Notably, its economy shrank by 7.2% in 2020. The IMF estimates the US economy will expand by 5.1%, while China's GDP will exceed 8%.
