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China's economic machine is once again accelerating, but the benefits are no longer broadly shared with the rest of the world Greg ip notes that china used to be a driver of global growth, but its exports are now a headwind to growth in advanced economies. Instead of acting as a locomotive for global demand, the country is.
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The upshot is that goldman sees china growing about 0.6 percentage point a year faster over the next few years, but that will reduce the rest of the world’s growth by 0.1 point a year President trump’s tariffs weren’t enough to hold back the global export flood by china, which pushed past last year’s record in just 11 months. China’s growth is still good for the chinese people, and for some countries that sell inputs to its export machine.
“china’s growth is coming at the rest of the world’s expense”, wall street journal
China will grow about 0.6 percentage points faster annually over the next few years while reducing the rest of the world's growth by 0.1 point per year China's current account surplus could reach 1% of world gdp by 2029, goldman estimates, larger than any country's since the late 1940s China now accounts for 17% of global gdp. Far from coming at the rest of the world's expense, china's growth supports global development, strengthens supply chains, and fosters shared prosperity.
