China Slide America in World Economy
The world economy is now in super-cycle. This is a period of historically high global growth, which lasted a generation or more. Super-cycle is marked by the emergence of this rapid economic growth enjoyed by countries such as China, India and Indonesia now.
There are many factors driving this occurrence, including increased trade, high levels of investment, rapid urbanization and technological innovation.
Historically, the world economy has twice previously enjoyed a super-cycle. First, 1870-1913, experienced a significant pickup in global growth. The average world economic growth at 2.7% per year, one percent higher than the previous. The cycle was led by the emergence of the United States, as well as the emergence of increased trade and greater use of technology from the Industrial Revolution.
Super second cycle, from 1945 until the early 1970s, average growth of 5% and is characterized by post-war reconstruction and the catch-up in most of the world. It also marked by the emergence of large middle classes in the West and exporting countries in Asia, led by Japan.
Now, we may be in a different super-cycle, but with similar aspects such as the two super-cycle earlier.
For people in Asia and around the world, the idea may sound unusual growth. But for many people in the West, the mind of the Super-Cycle is not unusual considering this is a problem facing the world economy. In fact, the world economy is now more than U.S. $ 62 trillion, about twice that a decade ago, even had surpassed pre-recession peak.
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