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:
We are definitely on a steep decline! We need to become one nation ‘under God’ again!!
If we would quit helping other countries n take care of our own
If you vote in a POS. YOU GET POS.
Yeah thanks to these moron politicians that have made a career in Washington as a lifetime position!! Corrupt sinners who have corrupted the,selves through greed and money and power!! They already have THIER reward look not for one in the next life ! Instead of power look for pitiful terror of just punishments for all the sins you committed upon earth and all the sufferings you poured upon the people through your votes in governing!! You will get what you deserve according to your wicked works I am talking to you you corrupt politicians who refuse to obey gods laws!!!!
That would make sense since they have 1.4 billion people and we have 323 million.
I am sure everyone has noticed, that everything you buy is made in China!
Just try buying something made in the USA. Especially, in clothing and shoes.
Thanks obama
Damn politicians..!!! We need term limits for all politicians! Career politicians make to much money from voting the way the rich & powerful pay them to!
in the last 8 years….get it straight….Obama built up 19 of 20 trillion dollars