According to London, U.K.-based Capital Economics, an independent economic research company, China’s period of par excellence performance might be ending soon. In its ‘Long-Term Global Economic Outlook‘ the firm says that China’s policies of high investment and rapid debt accumulation, make it vulnerable to a sharp deceleration. China’s export-driven growth and working-age population are both declining.
Capital Economics says that India, which will be “the world’s most populous country in the near future, has great potential for fast catch-up growth,” and forecasts 5-7 percent annual growth till 2040. “This is at least conceivable. India’s savings rates and entrepreneurial capacity are high enough to deliver such a rate. It will need much policy reform. But India’s politics are increasingly focused on economic performance. This does not guarantee success. But it does make it more likely.”
Last updated: December 26th, 2025
