China has the world’s biggest GDP but that does not make it No.1. It is still a long long way to Tipperary. As long as two thirds of the world’s reserves are held as US$’s; as long as almost 90% of world trade is in US$; as long as even China holds most of its reserves in US$’s; as long as the world thrives and grows rich on the US trade deficit; and as long as US research, innovation and scientific leadership drives the world economy, the USA will be No.1. If GDP meant power Egypt or Saudi Arabia would have licked Israel long years ago. Soon even India will have a bigger GDP than the USA.
GDP figures are quantitative, it reflects nothing about an empowered populace or the choices they get. It is a false indicator heavily titled in favor of big corporate s and not about any human values. It is an illusion.
The Daily Mail UK has an article “China ‘overtakes U.S as the world’s largest economy”. Worth reading.
Figures show the Chinese economy is worth £11trillion, the US £10.8trillion
The IMF estimates China’s economy will be worth £16.7trillion in 2019
The US has been the global leader since it overtook Britain in 1872
China has toppled America to become the biggest economy in the world, according to figures from the International Monetary Fund.
The US has been the global leader since it overtook Britain in 1872, but has now lost its status as top dog.
The latest IMF figures show the Chinese economy is worth £11trillion compared with £10.8trillion for the US.
China – whose wealth has accelerated in recent decades amid rapid industrialisation – is expected to extend its lead, with the IMF estimating its economy will be worth £16.7trillion in 2019.
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.
But experts have described the toppling of America after nearly 150 years by China – even on the PPP measure – as a ‘symbolic’ moment for the global economy.
China enjoyed three decades of double-digit growth before the global downturn, as industrialisation and sweeping economic reforms created a new powerhouse in the East.