Update: Forecast of the Chinese economy
According to the previous post, we mentioned that China's economy was projected to outnumber the American economy in about 4 years. Though, new reports are showing that the power shift has already taken place!
The latest IMF figures indicates that China's economy is now the major in terms of GDP at purchasing power parity. China's total production amounts to 17,61 trillion USD in comparison to 17,40 trillion USD for US.
As recently as year 2000, US produced nearly three times as much as China which shows the enormous growth that the latter country have had during this period.
In the same report IMF estimates China to reach 27 trillion USD in five years time, 5 trillion USD more than US' estimation. At that time, China is expected to produce nearly 25 % of the world's total GDP per
What should be mentioned is the fact that this is relative numbers, adapted to the price levels in the respective countries. Without any adjustments US is still the world's number one. Although, this is big news for China in their strive for respect and dominance in the world economy and means that no country can overlook China in the future.
Sources: IMF, Daily Mail, Business Insider, Bloomberg, The Economist