The outgoing year was very different for the two most powerful leaders in the world, writes the Nobel Prize-winning American economist. Paul Krugman in the New York Times.

At its beginning 2022, Joe Biden he was portrayed as a failed president.

His legislative program seemed to be bogged down, while economic problems seemed to portend a crushing loss for the Democrats in by-elections (Intermediate exams) to follow in the US in November. In reality, however, instead of all of the above, last year the USA the Biden administration’s groundbreaking inflation reduction act (the Inflation Reduction Act) and the “red tsunami” of the resurgence Republicans in Congress what many expected, while unemployment is now low and inflation has now retreated, although it is worth noting that many economists are still predicting a recession.

On the contrary, at the beginning of the year its leader Xi Jinping from China he continued to brag about his victory over the pandemic amid claims that China has even re-emerged as a leading power internationally thanks to its seemingly successful handling of Covid.

However, now that Xi has suddenly put an end tozero covid» restrictions, hospitalizations and deaths from COVID-19 in China, they are on the rise, pushing the country’s healthcare system to its limit.

Future of China

Moreover, the Chinese economy is likely to face serious problems in the next two to three years, and China’s long-term economic growth forecasts are downgraded.