China’s record-breaking feat in 2021

The country’s full-year GDP resulted in the economy increasing by USD17.7 trillion last year

In February, TRT World reported that China had just surpassed the whole of the European Union (EU) in terms of economy. Because of this milestone, China may become the largest economy by 2030.

The European Statistical Office (Eurostat) revealed that the EU’s GDP increased by 5.2 percent in 2021, following a record-breaking recession in 2020. Its GDP was little over USD17 trillion, returning to pre-Covid-19 levels.

China Briefing shared that China’s GDP for 2021 expanded by 8.1 percent. The country’s full-year GDP resulted in the economy increasing by USD3 trillion from 2020 to USD17.7 trillion in 2021, pushing past the EU’s economy.

China’s fixed-asset investments, which include infrastructure, machinery and equipment, and real estate increased by 4.9 percent in 2021.

Infrastructure investment climbed by only 0.4 percent, down from a 0.5 percent gain in the first 11 months. Manufacturing investment increased by 13.5 percent in 2021, with special-purpose machinery investment increasing the greatest, by 24.3 percent year-over-year (y-o-y). In 2021, the country’s trade surplus reached new heights with USD676 billion, up 26 percent from 2020. Imports (USD3.36 trillion) and exports (USD2.69 trillion) totalled USD6.05 trillion, up 30 percent y-o-y.

More: China’s property market is expected to make a comeback this year

China’s share of global GDP increased by 1.1 percent in 2020, the greatest gain in a single year in decades. 

The fact that China recovered from the pandemic faster than the US has caused economists to rethink their estimates. For example, the Japan Center for Economic Research originally predicted that it would overtake the US in 2036 or later. It now expects China to be the world’s largest economy as early as 2028. 

British consultancy Centre for Economics and Business Research (CEBR) expects China’s GDP to increase 5.7 percent annually through 2025 and 4.7 percent per year until 2030.

The Property Report editors wrote this article. For more information, email: [email protected].