Very good news! International Monetary Fund (IMF) says by measuring purchasing power parity (PPP) that the US is no longer the world’s largest economy, as China has overtaken the country .
The US was the world’s largest economy since 1872, when it overtook Britain...
By the end of 2014:
- China’s economic output will amount to $17.6 trillion,
- and the US $17.4 trillion.
So the US will be demoted to the second place!
China’s growth means it now accounts for 16.5% of the global economy in real purchasing power terms, the US 16.3% for.
- China remains the biggest foreign holder of US government debt.
- China is holding an estimated $1.27 trillion in US Treasury bonds. That is not really smart beceause earlier this year China and Russia agreed to a measure to undercut the domination of the US dollar as the international reserve currency by paying each other in domestic currencies.
Economic system discussion.
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