Chinese Economy May Overtake USA This Year

Chinese GDP (Purchasing Power Parity) may surpass the US this year (at around 16 trillion USD). Purchasing power parity adjusts GDP based on costs in a country – for example if average costs in China are half those in the US then their PPP should be around double of their nominal – which is almost true. China’s nominal GDP stands around 9 or 10 trillion this year. The first quarter the US economy grew a very tiny 0.1%, which is very tiny compared to a approximately 9% growth rate happening in China. It will really be interesting to see what the world is like when the Chinese economy becomes the largest – and how that will affect the balance of power around the world.