China Set to Surpass US Economy Within Decade, Economist Argues

China will grow at double the rate of the US in coming years, argues economist Nicholas R. Lardy. Its nominal GDP will likely surpass the US's in about a decade.

Doom and gloom outlooks on China's growth are too heavily based on misconceptions and data misreadings, Lardy says.

Adjusted for inflation, China's 2022 GDP growth actually outpaced the US's, expanding 5.2% versus 2.5% in the US.

China ramped up investment last year in manufacturing, mining, utilities and services, while household consumption overtook income.

Concerns are overstated about an investment collapse in China's real estate sector and about its private sector crackdown, Lardy argues.