China Overtakes The US As The World’s Largest Economy

International Monetary Fund says that China overtakes the United States as the world’s largest economy. The latest figures show the Chinese economy is worth £ 11 trillion compared with £ 10.8 trillion for the US. It means that America falls into the second place for the first time since 1872.

China – whose wealth has accelerated in recent decades amid rapid industrialization – is expected to extend its lead, with the IMF estimating its economy will be worth £ 16.7trillion in 2019, the Dailymail marks. That would be 20 per cent bigger than the US economy, which is forecast to be worth £ 13.8trillion by then.

The numbers are based on ‘purchasing power parity’ (PPP) which makes adjustments for the fact that goods are cheaper in countries such as China relative to the US.

Without these adjustments for living costs, the Chinese economy is still smaller than that of the US, at £ 6.4trillion.

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