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Hang on to your hats, America.
And throw away that big, fat styrofoam finger while you’re about it.
There’s no easy way to say this, so I’ll just say it: We’re no longer No. 1. Today, we’re No. 2. Yes, it’s official. The Chinese economy just overtook the United States economy to become the largest in the world. For the first time since Ulysses S. Grant was president, America is not the leading economic power on the planet.
It just happened — and almost nobody noticed.
The International Monetary Fund recently released the latest numbers for the world economy...
originally posted by: TDawgRex
a reply to: coldkidc
So much for the prediction that China was to be the leading economy by 2020. I guess they arrived early.
It's Official: America is now No.2...
originally posted by: coldkidc
Surprised I didn't see anything posted about this yet.
China Overtook The US As The World's Largest Economy
Mike Bird Oct 9, 2014, 5:08 AM
Sorry, America. China just overtook the US to become the world’s largest economy, according to the International Monetary Fund.
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 cross-over 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 $US17.632 trillion), and the US will make up just 16.28% (or $US17.416 trillion).
It’s not all sore news for the US. It will 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 $US6.5 trillion lower than the US and isn’t likely to overtake for quite some time.
originally posted by: criticalhit
No, no, no
It's ridiculous to assume the USA would stay in the number one economic position when the nations your talking about have 1.3 Billion workers
Well, not quite. Or at least not yet. As some pundits have pointed out, the IMF isn’t using the conventional measure of the value of goods and services the China produces, otherwise known as gross domestic product, or GDP. By that measure, the good ol’ U.S.A. still makes way more dollars worth of stuff than China does — though that lead is deteriorating.
Instead, the IMF is referring to GDP adjusted for something called purchasing power parity (PPP). This takes into account how much people in a given country can actually buy. And if you’ve ever visited a developing country, you know that one dollar can buy quite a lot more of certain goods and services, like bread and milk or a meal at a restaurant, than it could in the West. PPP is an attempt to take that difference into account.