World Economy

China Stumbles

China StumblesChina Stumbles

For the first time in almost a decade, China has lost ground in catching up with the US economy, when output is measured in dollars. US gross domestic product increased $590 billion in 2015 from a year earlier, according to data released Friday. China’s economy, while reporting 6.9% growth for the year, added $439 billion, as a weaker yuan sapped the value of output gains in dollar terms, according to data compiled by Bloomberg. “The US has come back from the financial crisis with robust technology innovation leading the recovery, while China’s economy is heading down,” said Niu Jun, an international relations professor at Peking University. “The number itself isn’t a specific reason for being either too optimistic or pessimistic, but if China can’t successfully reform its economy, the real gap between the two will expand, and it will take longer for China to catch up.” Last year was the first time since 2006 that China made no progress in closing the gap with the world’s largest economy.