According to the International Monetary Fund, when looking at purchasing-power, China is right now overtaking the US to become the world’s largest economy.
By the end of this year, China will constitute 16.48% of the world’s purchasing-power and the US will make up 16.28%.
This is according to ‘adjusted purchasing power’:
The simple logic is that prices aren’t the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it’s not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist’s Big Mac Index is a great example of these disparities.
So the IMF measures both GDP in market-exchange terms and in terms of purchasing power. On the purchasing-power basis, China is overtaking the US right about now and becoming the world’s biggest economy.
We’ve just gone past that crossover on the chart below, according to the IMF. By the end of 2014, China will make up 16.48% of the world’s purchasing-power adjusted GDP (or $17.632 trillion), and the US will make up just 16.28% (or $17.416 trillion):
IMF, Google Public Data ExplorerAdjusted for purchasing power, the IMF thinks China’s economy is now the world’s largest.
It’s not all sour news for the US. It’ll be some time yet until the lines cross over in raw terms, not adjusted for purchasing power. By that measure, China still sits more than $6.5 trillion lower than the US and isn’t likely to overtake for quite some time:
This is our fault.Thank you wal-mart shoppers
China now is the big cheese, thanks to Obama’s inept Presidency!
Thanks America For Falling Down
Clinton “borrowed” money from China ………
Thank you odumbo and your muslim buddies and commie friends you have infiltrated in our government.
Outstanding. ..way to go government! I love my country but the government. ..nah.
TAKE TIME TO “VOTE” DON’T JUMP…
“MY PLEDGE TO AMERICA”
“GIVE ME ALL YOUR VOLTS.. I HAVE PLEDGES.. FOR ALL US-AMERICANS OF 1 MILLION US DOLLARS+ A HOME, WITH TERMS”
? for the DEMMOCRATES PREACHING ON BUILDING JOBS FOR ALL AMERICANS, AND AMERICA’S NEW YOUNG GENERATIONS HAVE NO FUTURE TO LOOK FORWARD TO OR TO HAVINGS FAMILYS. “I HAVE A FULL PLAN THAT WILL OVER THROW THE EVILS OF ENGLANDS EVIL PLAN’S ON THE WORLD… // America is in real big trouble…..’politicans don’t practice these rules; greed spends for ones self, a future that is needed in America, has to tend to US Americans, and preserving America, that is my plan mostly, it will challenge Americans to do much better and protecting America’s freedoms with in the laws of America only…/ ‘
‘AMERICA I’M YOUR FUTURE.”VOLT FOR R LEE MILLER”.OPPROTUNITIES FOR ALL US-AMERICANS.'”2016 Presidental Election”
One of Five million US Dollar 770-Account each : a home or place to live : education of how to Help build America. with terms: “ALL US AMERICANS” US AMERICAN TRIBES” US GOVERNMENT EMPLOYEES” And US AMERICANS Holding OFFICAL Offices in America. & Yes US Americans serving in the US Military w/simple terms..
We will be using china’s money soon, and you can keep warm by burning American money.
We are going in the wrong direction, period!
democrats in action!