Global Economics Monthly: Growth and the G-2

Beijing and Washington may disavow the term, but “G-2” is an increasingly apt description of the world’s most important economic relationship. The United States and China are now the world’s two largest economies and represent a combined total of 32 percent of global GDP. Unfortunately, these economic elephants are also among the biggest sources of uncertainty for the global growth outlook. While both governments are understandably—and rightly—focused on tackling economic challenges at home, the decisions they make will have a profound impact on each other and the rest of the world. To sustain the global recovery, only a growth strategy for each that works for both will be sufficient.