We are slowly losing the battle for economic dominance in comparison to our fellow counterparts around the world. Researchers from the Organization for Economic Co-operation and Development (OECD) from Paris stated that China’s economy will be larger than the combined economies of the Europe countries by the end of 2013, and will overtake the US by the end of 2016.
If you think that’s huge, they also believe that by 2025, the combined GDP (Gross Domestic Product) of China and India will be larger than the combined GDP of France, Germany, Italy, Japan, UK, US and Canada.
What this could mean for the US is that while the GDP will continue to grow by 3% each year for the next 5 decades, Inequalities will still persist, even though people in the poorest countries see their income quadruple by 2060, with those living in China and India seeing a more than a seven times its increase. This was their prediction on why China is being viewed as the best economic country in the world.
While experts feel that these rising imbalances could undermine growth, countries may change their direction by re-evaluating its current process on how they handle labor and production regulations. Ultimately this effects how businesses handle their employees in their respected parts of the world.