K-shaped economies in the US and China signal divergent growth paths

Economists note that the United States is experiencing an intensifying K-shaped recovery, where high‑growth sectors such as technology and healthcare continue to expand while other parts of the economy lag. Richard Clarida highlighted that this divergence has deepened over the past six to seven years, prompting investors to seek opportunities in resilient firms and to watch for policy measures that could widen the gap.

In China, the same K‑shaped pattern is evident. Exports surged 27% year‑on‑year, driven largely by high‑tech products, artificial‑intelligence applications and electric‑vehicle manufacturing, which together accounted for a large share of industrial output growth. By contrast, domestic demand remains weak: retail sales rose only 0.2% in April and fixed‑asset investment fell 9.6%, reflecting a struggling property market and reduced infrastructure spending.