10/08/2014 3:33 pm EDT
This was inevitable, but it still
feels momentous: By one important measure, China's economy is now the biggest
in the world, topping the United States.
worth $17.6 trillion, adjusted for China's relatively low cost of living,
compared with $17.4 trillion for the U.S., the International Monetary Fund
estimated as part of its latest World Economic Outlook.
Here's how that looks in chart form:
IMF expects this trend to continue indefinitely. (h/t to Business Insider
for the news and the idea to use Google Public Data's
-- China's share of the global economy is now slightly bigger than America's,
at 16.5 percent to 16.3 percent:
figures are adjusted for the relative costs of living in both countries, known
to fancy economists as "purchasing power parity." It's something
economists do to try to make comparisons between countries more fair. It is
crazy cheap to live in China and crazy expensive to live in the U.S., so a
trillion U.S. dollars are worth a lot more in China than in the U.S.
with the fact that China is manipulating its currency
to be worth much less than the dollar. It does this to help make Chinese stuff
cheaper than U.S. stuff on the global market. American politicians regularly
pretend to be super angry about this, but don't much mind getting
all the cheap Chinese stuff. And China's booming factory sector has, in turn,
helped make China's economy rapidly get bigger and bigger.
meaning, not adjusted for costs of living -- the U.S. economy still dwarfs
China's, at $17.4 trillion to $10.4 trillion:
per capita per year in the U.S., compared with less than $8,000 per person in
studied the context of the article and the valuable data provided in the form
chart eloquently explains the prose and cones for the purpose of proper
financial analysis and deduction.
would facilitate to visualize the tremendous negative impact on the already other
heads in which lone superpowers stand much ahead than the one on the basis of which
the article was written.
it now seems to be amazingly much ahead leading even China, but within a couple
of years the leading figures would crumble down much below the Chinese level