GDP Growth Rates
The most recent data available regarding the GDP growth of different countries on the World Bank’s data site is for the year 2019 which shows the GDP growth rate of China, the UK, Japan, and the USA as 6.1%, 1.5%, 0.7%, and 2.2% respectively (GDP growth (annual %) | Data, n.d.). The data indicates that China is among the fastest-growing economy in the world leaving the US behind. However, the pandemic affected the overall economic output all over the world affecting the net growth rate of almost all the countries. Therefore, according to the data available on the website of the International Monetary Fund (IMF), negative growth was observed for every country instead of China which exhibits a growth rate of 2.1% as compared to the -3.4%, -5.1%, and -10% GDP growth rate of the US, Japan, and the UK respectively in 2020 (World Economic Outlook Update, January 2021: Policy Support and Vaccines Expected to Lift Activity, n.d.). But as the business and health conditions have improved with time, the projected growth rate for the USA, Japan, China, and the UK is 5.1%, 3.1%, 8.1%, and 4.5% in 2021 (World Economic Outlook Update, January 2021: Policy Support and Vaccines Expected to Lift Activity, n.d.). From these indicators, we can conclude that the growth rate of China is higher than that of the USA which is again higher than the UK and Japan.
The variation in the growth rate of different countries is caused by various political, economic, and social conditions prevailing in different regions of the world. Therefore, when the global output is projected to rise in 2021, this trend is not linear in all countries (PwC, n.d.). However, among all the recovering economies, the growth rate of China is projected to be the highest due to its consumer market and demand-side reforms, better control of pandemics, central bank liquidity, early production and distribution of vaccines, and business development policies (Zhang, 2021). The vaccine-powered strength and supporting fiscal policy will also be the prominent factors for the quick recovery of the USA and Japanese economies (PwC, n.d.). However, for the service-based economy of the UK, it will take longer to recover from its pre-pandemic economic conditions.
GDP growth (annual %) | Data. (n.d.). Data.worldbank.org. Retrieved January 28, 2021, from https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2019&start=1961
PwC. (n.d.). From the great lockdown to the great rebound. PwC. Retrieved January 28, 2021, from https://www.pwc.com/gx/en/research-insights/economy/global-economy-watch/predictions-2021.html
World Economic Outlook Update, January 2021: Policy Support and Vaccines Expected to Lift Activity. (n.d.). IMF. https://www.imf.org/en/Publications/WEO/Issues/2021/01/26/2021-world-economic-outlook-update
Zhang, Z. (2021, January 12). China’s Economic Outlook in 2021: What to Expect. China Briefing News. https://www.china-briefing.com/news/china-2021-economic-outlook-foreign-investor-expectations/