China will Become the World's Largest Economy by the End of 2014

[Anonymous]

China will Become the World's Largest Economy by the End of 2014
China is poised to overtake US's share of global GDP

China is poised to leapfrog the US as the world’s largest economy, according to data released by the International Comparison Program.

 

The ICP is financed by a consortium of international, regional and national development agencies.

Based on the survey, one of the world’s most respected publications, The Economist, has calculated China is on track to overtake America’s share of global GDP by the end of this year – far earlier than previously dominant predictions centering on a shift later in this decade.

The survey, which released data on national purchasing parity and real expenditures, found China’s economy was 87.1 per cent of the size of the United States’ in 2011 and held 14.9 per cent of the world’s wealth.

 In comparison, the United States, which has been the world’s largest economy since 1872, held 17.1 per cent of global GDP.

“China’s PPP exchange rate is now higher than economists had previously estimated using data from the previous survey in 2005: a whopping 20 per cent higher,” The Economist said.

“So China, which was forecast to overtake America in 2019 by the IMF, will be crowned the world’s pre-eminent economy by the end of the year”.

Meanwhile, the survey showed India had shot up to become the world’s third-biggest economy, with 6.4 per cent of the world’s wealth.

Japan’s 4.8 per cent share of global GDP saw it slip to fourth place from third in 2005, when it held 8.4 per cent.

Germany rounded out the list of the top five largest economies, while Indonesia crept into the top ten for the first time.

The cheapest countries to live in were Egypt, Pakistan, Myanmar and Ethiopia.

[Author]

May 1, 2014 at 11:16 AM