The dollar on the path to the end of its imperial era
To get a preliminary understanding of the evolution of the American economy within the global context, we can rely on two important indicators: GDP growth and the current account balance. The GDP of the United States currently represents 26.3% of the world GDP, while China's accounts for 16.9%. In contrast, China’s GDP grew at an average annual rate of 13.27% between 2005 and 2020, while the American GDP only grew at an average rate of 3.2% during the same period. This implies that if this differential in average growth rates persists in the future, China's GDP will surpass that of the United States within five years. Based on the projected growth rates for the coming years, which are 1.7% for the U.S. and 5.2% for China, it is estimated that China will exceed the U.S. GDP around 2037, although some calculations suggest this could happen as early as 2035. It is also anticipated that once it surpasses the U.S., China will lead global GDP for the next forty years. Even more con...