Thursday, 9 October 2014

China May Or May Not Have Overtaken USA Economy

I'm not really sure what the implications are but China has overtaken the USA as the Worlds largest economy in terms of GDP way ahead of previous forecasts which said that it would happen but not for another couple of decades.
The IMF put China reaching $17.6 trillion GDP overtaking the United States $17.4 trillion and it is expected to widen the gap in the coming year but that does come with a warning that the figures are adjusted for Purchasing Power Parity.
Not sure how worried America should be, i will hold my hands up and admit i don't really know what Purchasing Power Parity means, but if this leads to them losing the reserve currency status they will be in a world of hurt as prices shoot up.
It is shaping up that the 21st century is going to be the the Chinese Century as it powers forward on all fronts but only time will tell if that will be a good thing.

1 comment:

Keep Life Simple said...

Not GDP. Real buying power. The USA is still far ahead of china in nominal GDP.