China Officially Overtakes Usa As World's Largest Economy, According T

[donganaaK]

China officially overtakes USA as world's largest economy, according to IMF

 

 

 

 

MARKETSMore: BI London China

China Just Overtook The US As The World's Largest Economy

• MIKE BIRD
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• OCT. 8, 2014, 5:08 AM
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REUTERS/Shannon Stapleton

 

Sorry, America. China just overtook the US to become the world's largest economy, according to the International Monetary Fund.

 

Chris Giles at the Financial Timesflagged up the change. He also alerted us in April that it was all about to happen. 

Basically, the method used by the IMF adjusts for purchasing power parity, explained here.

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:

 

IMF, Google Public Data ExplorterBut in terms of the raw market value of China's currency, it still has a long way to go.

 

Read more: http://www.businessinsider.com/china-overtakes-us-as-worlds-largest-economy-2014-10#ixzz3FZYSDX9S

[ravula]

Fcuk china

[mustang302]

inka full english batch vasthae..racha chaesthadi china USA assam...veelu itae...inko war ki poi..china ni distroy chayyali ika USA vallu...the king anipinchukovali antae...!!

[Hyderabad_Nawab]

aa Luv da la Manufacturing (Malli dantlo nundi Copy kotti Duplicates Chestaaru) Tagginchi vere  countries ki Move Cheyyali.... :3D_Smiles_38:

[vagaru]

it think China may fall anytime in future as it is not a democratic country..

 

already hong kong is trying to get out of china..

[Kottukusaavandi03]

U.S china market close chesi verey country nunchi purchase chesthey ...china assam in no time... :3D_Smiles_38:

[Hyderabad_Nawab]

it think China may fall anytime in future as it is not a democratic country..

 

already hong kong is trying to get out of china..

Lol....Evaru Chepparu Mayya....Who is dat Intelligent Pranav...

[micxas]

U.S china market close chesi verey country nunchi purchase chesthey ...china assam in no time... :3D_Smiles_38:

then china ll start selling their dollar reserves which destroy american economy  %$#$ , so they cant..

[Kottukusaavandi03]

then china ll start selling their dollar reserves which destroy american economy  %$#$ , so they cant..

 

Economy ni destroy chesey anni reserves unnaayaa... ? why... ? :3D_Smiles:

[micxas]

Economy ni destroy chesey anni reserves unnaayaa... ? why... ? :3D_Smiles:

Yes man, google it.. u ll surprise by looking  how much US owes China/ how many dollar reserves china has...  bye1... They both  r interdependent, in fact china is in better postion position to control. 

[donganaaK]

then china ll start selling their dollar reserves which destroy american economy  %$#$ , so they cant..

 

USA vaallu ah vishayam lo maatram they r one step ahead of china .... these guys took a loan of abt 4trillion dollars from china , and the condition is to pay it back only in the form of dollars ... oka vela China kanuka US currency ni devaluate chesthey chinese economy ke andarikante pedha bokka ... they wont even think abt doing that..

[Anta Assamey]

CHINA cannot withstand that position for a long time... I think its just for a very short period... 

[micxas]

USA vaallu ah vishayam lo maatram they r one step ahead of china .... these guys took a loan of abt 4trillion dollars from china , and the condition is to pay it back only in the form of dollars ... oka vela China kanuka US currency ni devaluate chesthey chinese economy ke andarikante pedha bokka ... they wont even think abt doing that..

Yeah, as soon as they start selling, their remaining reserves will become worth less. so they cant.. blow to both.. 

[vagaru]

Lol....Evaru Chepparu Mayya....Who is dat Intelligent Pranav...

 

 

news thelsukokunda LOL yendhi man.. google cheyyii..

[donganaaK]

Yeah, as soon as they start selling, their remaining reserves will become worth less. so they cant.. blow to both.. 

 

their strength is their manufacturing industry bhaiyya ... actually even for a country like india its not easy to take china's place , only china can handle such a big manufacturing industry in the world...... deeniki chaala reasons unnay .. one of the main reasons is china has a lot of rare earth metals and industrial metals that it can use in the manufacturing process , and the government controls every mine in the country so its easy for the companies to get raw materials from the govt at the best prices ... no other country in the world has such an availability of raw materials ... thats y its very hard for the manufacturing industry to move out of china because no other country can handle it ....... anduke nothing can be done abt it , USA and China just has a love-hate relationship anthe ..... okati padipothe inkokalla economy meeda direct affect untadi .. so they usually wont dare to mess with manipulating each others economy ..