America will contribute more to the global economy this year than China

As the US economy continues to recover this year, it is predicted that the US will contribute more to global economic growth than China for the first time since 2005. Corona 19, which shook the world economy last year, is also influencing the economic outlook of the world's two largest economies, the United States and China.

 

The Wall Street Journal (WSJ) reported that the US economy will grow 7% this year and contribute more to global economic growth than China, according to Oxford Economics and Goldman Sachs, the UK's global economic prospects on the 7th (local time). . Goldman Sachs predicted that this year's economic growth rate is 8%, which is higher than that of the US, but the US economy is about a third larger than that of China.

 

The opinions of several economic experts are no different. Catherine Mann, chief global economist at Citibank, gave a positive interpretation, saying, "In 2021, the United States will again take on the role of global economic locomotives." JPMorgan predicted, "By the middle of this year, the US will recover its pre-corona growth rate and eventually surpass it." On the other hand, for China, he predicted that "it has already returned to the level of growth prior to the outbreak, but it will not grow beyond that". Last year, the US and China economic growth rates were -3.5% and 2.3%, respectively.

 

There are four main reasons for the expected recovery of the US economy. First, the corona vaccine is rapidly being distributed. According to Bloomberg News' Vaccine Tracker, if vaccination continues at the current rate, 75% of the population in the United States is expected to finish two vaccinations in September. President Biden's stimulus measures worth $1.9 trillion (about 2100 trillion won) and the US Federal Reserve's loose monetary policy close to zero interest rates are also factors that brighten the US economic outlook. There are many opinions that the increased household savings can also be used as a driving force for economic growth. According to Oxford Economics, household savings in the United States currently amount to $1.8 trillion.