GS: By 2075 .. US economy will be 3rd largest in the world after ‎China and India

A report issued by Goldman Sachs Bank revealed that it expects the size of the Chinese economy to surpass its American counterpart and lead the world’s economies by 2050, with the United States being second in that year. The report predicts that the American economy will be ranked third after China and India by the year 2075, noting that the Chinese economy was ranked sixth in the world in 2000 after America, Japan, Germany, Britain, and France.

China is considered the fastest growing major economy and the fastest in the past thirty years with a high annual growth rate. China is also the largest trading country, the largest exporter, and the second largest importer in the world.

On a second level, a recent report by Bloomberg stated that the Covid-19 pandemic exacerbated the debt problem that was already burdening the poorest countries in the world. In response, the richest countries, meeting at the G20 forum in 2020, created a coordinated debt relief plan called the Common Framework. It was designed to reflect a new reality. China now lends far more to developing countries than Western members of the Paris Club, the body that has supervised international debt negotiations for decades. By the end of 2023, the Joint Framework had not yet provided any meaningful relief. Economists are concerned that failure to resolve the impasse could lead to or deepen economic recession in large swaths of the world.

In 2022, developing countries face a collective debt stock of about $9 trillion, with annual service payments reaching a record level of $443 billion, according to estimates from the World Bank, which estimates that the service burden will continue to grow. This situation has left nearly 60% of the world’s 75 poorest countries in or near debt distress. Ghana, Zambia, Sri Lanka and Ethiopia have already defaulted on their debts. Other countries of concern include Argentina and Kenya

In addition, last October, the International Monetary Fund lowered its growth forecasts for China and the euro zone and said that global growth as a whole remains low and uneven despite what it described as “remarkable strength” of the US economy.