Adjusted for purchasing power, China's economy is now the world's largest.
Posted on 10/08/2014 2:01:33 PM PDT by SeekAndFind
The Chinese economy just surpassed the U.S. economy to become the world’s largest in terms of purchasing power, according to the International Monetary Fund.
The IMF measures economic strength by Gross Domestic Product (GDP) in both market exchange rates and average purchasing power, the latter being where China has overtaken the U.S. with a GDP of $17.6 trillion by the end of 2014 — 16.4 percent of the world’s purchasing power. The U.S. will close out the year with a purchasing-power adjusted GDP of $17.4 trillion, or 16.2 percent of the world’s total.
Financial Times predicted the change in April and illustrated China’s new economic dominance in series of charts late Tuesday.
“In the spring, the International Comparison Program calculated new exchanges rates for comparing output of different economies,” the Times reports. “At the time it suggested that China was the world’s largest economy because money went significantly further in China than previously thought. Now it is official.”
The U.S. still maintains its dominance in raw terms not adjusted for purchasing power by $6.5 trillion, as illustrated in this chart by Business Insider.
(Excerpt) Read more at dailycaller.com ...
Rate things are going, Botswana will pass the US economy, with this bunch in charge.
Ok,Obama can write that one off his checklist.
Obummer has met his objective, we are no longer "exceptional".
Beat me. Was gonna say Bangladesh, but still.
The left is still calling for the continued de-industrialization of America (climate change).
RE: Obummer has met his objective, we are no longer “exceptional”.
Look at the bright side, we have a new slogan — WE’RE NUMBER 2 !!!
Not a peep about the coal-fired power plants that China is bringing on line. At a rate of about one per week.
No innovation, ideas or free market, just imitation and 500,000,000 low skill and wage workers.
Death to the Main Enemy! Death to bourgeoise America!
You die, Joe, you die rill suun! Long live Sheman Mow! Long live the victory of the Communist masses!
Do I really need a tag for this crap?
Formerly communist China experiments with capitalism as formerly free America plunges headlong into socialism. Socialism does not work.
China will NOT follow Japan. Why you ask?
Because China has the labor force. Japan population is stagnant.
Another difference...China does not have national debt anywhere near like Japan or USA.
China had the world’s largest economy for over 1000 years in history. So this is nothing new. They just regained that position.
Raise the import tariffs.
Japan’s population is shrinking, it will shrink by greater degrees with future generations and fewer women to give birth. China’s is shrinking too, but when they have about 2 billion people, they have a long way to go.
That is not correct. China graduate way more engineers than USA. Engineers are hardly low-tech. While we graduate 10 times as many lawyers per person. What do lawyers innovate?
China can now manufacture every single item manufactures in where on the globe. But you are right in one aspect, China manufactures almost all low-tech items used by people in everyday life. Almost all goods in American retail stores are made in China. All the best golf clubs are now manufactured in China.
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