The United States is widening the economic gap with China

In 2024, the United States consolidated its status as the world's largest economy, surpassing China for the third year in a row due to the activity of its consumers. The US GDP increased by 5.3%, adjusted for inflation, while China's GDP grew by 4.2%, which confirms the growing gap between their economies. 

High inflation in the United States in 2022-2023 became the driver of monetary policy tightening, which had a positive impact on nominal indicators. China has experienced deflation, indicating a decline in prices since mid-2023, which has affected its economic performance. 

Adjusted for inflation, China's real GDP grew by 5%, while the United States grew by 2.8%, but nominal figures are more important for assessing income and trade. At the same time, China's per capita GDP in 2023 was $12,614, and in the United States it was $82,769, which highlights China's potential in the long term. 

China is focused on stabilizing the real estate market and boosting consumer confidence, while the United States continues to build momentum, supported by inflation above target. The race for the title of the world's largest economy continues, but the United States remains in the lead.