China’s rise to economic might has been a very interesting tale, as the country’s political struggles and turmoil have borne great fruit. Back in 2002, the two dominant economic super powers in the world were the US and the EU, with each having a 19.8% and 19.9% share of the global GDP when looked at with Purchasing Power Parity in mind. With all of that having been said and now out of the way, it is important to note that both of these regions have seen their powers diminish due to a rapidly rising China.
China’s share of the world’s GDP when adjusted for PPP was around 8.1% in 2002, but 20 years later we are seeing a completely different picture. China now accounts for 18.8% of the world’s GDP, and both the US and the EU have seen a decrease of 4 and 5.1 percentage points respectively. The US now has a 15.8% share of the global economy, and the EU has just 14.8% which is a far cry from the unassailable dominance that they showed in decades prior.
The global recession will likely make the gap wider because of the fact that this is the sort of thing that could potentially end up bringing the economies of the US and the EU to a halt. China, on the other hand, is projected to continue showing modest growth rates which will allow it to cement its place as the world’s foremost super power.
China is not the only country that has been rising rapidly either. India managed to climb its way to an over 7% share of the world’s GDP, and while it is still short of China its growth rate will allow it to get closer to the US and the EU in terms of global GDP share.
The twin powers of China and India might create an entirely new economic paradigm with these two countries now vying for global dominance perhaps similarly to how the US and the Soviet Union were struggling against each other all throughout the 20th century.
H/T: Statista.
Read next: Gallup Conducted Its Monthly Study On American Fears And Concerns For The Month Of July
China’s share of the world’s GDP when adjusted for PPP was around 8.1% in 2002, but 20 years later we are seeing a completely different picture. China now accounts for 18.8% of the world’s GDP, and both the US and the EU have seen a decrease of 4 and 5.1 percentage points respectively. The US now has a 15.8% share of the global economy, and the EU has just 14.8% which is a far cry from the unassailable dominance that they showed in decades prior.
The global recession will likely make the gap wider because of the fact that this is the sort of thing that could potentially end up bringing the economies of the US and the EU to a halt. China, on the other hand, is projected to continue showing modest growth rates which will allow it to cement its place as the world’s foremost super power.
China is not the only country that has been rising rapidly either. India managed to climb its way to an over 7% share of the world’s GDP, and while it is still short of China its growth rate will allow it to get closer to the US and the EU in terms of global GDP share.
The twin powers of China and India might create an entirely new economic paradigm with these two countries now vying for global dominance perhaps similarly to how the US and the Soviet Union were struggling against each other all throughout the 20th century.
H/T: Statista.Read next: Gallup Conducted Its Monthly Study On American Fears And Concerns For The Month Of July
