America is the largest economy in the world and its contribution to the global economy is increasing. The US share is likely to reach 26%, the highest in the past two decades, according to the IMF. A decade ago America contributed more than the European Union and Britain, but now America’s contribution has exceeded their combined contribution.
The banking sector is also getting affected
Meanwhile, China’s share is declining and is likely to fall to 17% in 2024. The growing gap between the US and China is a testament to America’s dynamism and stability. For nearly two decades, China played the role of the world’s factory, but today it is facing many economic challenges. About a third of China’s real estate sector is in deep trouble, and its collapse is also affecting its banking sector.
Policy of China Plus One
Foreign companies and investors are now turning their backs on China, while many foreign companies are adopting a “China plus one” policy. The problem of unemployment there is increasing rapidly and the Sino-US tension is not abating. There are tensions between China and the United States on a number of issues, and the Chinese government has promoted draconian regulations in the name of national security.
China’s share is declining
The contribution of the European Union and Britain to the global economy was 30% in 2006, which has now declined to about 21%. China’s share was also five percent in 2006, rising to about 19% in 2020, but it has been facing a steady decline since 2021 and is projected to hold 17% this year. Japan’s share is also expected to decline to around 4% during this period.
Hope to leave Japan behind
In 2006, Japan’s share was about eight percent. India’s share of the global economy is steadily increasing and is expected to reach four percent of Japan’s share this year. India is currently the fifth largest economy in the world and is expected to overtake Japan soon.
IT sector is playing a big role
India is currently witnessing growth in almost all sectors, but there are a few sectors that are playing the role of top performers. Number one among them is IT, followed by healthcare, FMCG, renewable energy and infrastructure. Talking about the IT sector, Statista’s report says that currently it is a sector with a market size of $26.73 billion, which will become a $44 billion sector by 2029.
The pace of development is being seen in the IT sector
Regarding this, when we asked a senior tech expert working at Amity Software, what he thinks is the pace of development in the IT sector at present. He said that currently there is a lot of demand for software in the market. Indian companies are also getting projects from America, Canada and other countries. One of the reasons is to provide the best service at the lowest price. He says that his company also focuses on this.
