9.10.14

The World's largest Economy


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.
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): It's not all sore 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: But in terms of the raw market value of China's currency, it still has a long way to go.

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