12.04.14
For the first time in a long time—when Ulysses S. Grant was president in fact—the US is no longer the largest economy in the world. That distinction now belongs to China, which will produce $17.6 trillion in goods and services this year, compared to $17.4 trillion for the US, according to the International Monetary Fund.
As recently as 2000, the US produced nearly three times as much as China. This year, China will account for 16.5% of the global economy when measured in real purchasing-power terms, compared with 16.3% for the US. A year ago, China surpassed the US in terms of global trade.
However, not all observers agree with the IMF's assessment, which is based on purchasing power parity and measures the actual output as opposed to fluctuations in exchange rates. When based on international exchange rates, for example, the US economy remains bigger than that of China, by nearly 70%, according to experts.
As recently as 2000, the US produced nearly three times as much as China. This year, China will account for 16.5% of the global economy when measured in real purchasing-power terms, compared with 16.3% for the US. A year ago, China surpassed the US in terms of global trade.
However, not all observers agree with the IMF's assessment, which is based on purchasing power parity and measures the actual output as opposed to fluctuations in exchange rates. When based on international exchange rates, for example, the US economy remains bigger than that of China, by nearly 70%, according to experts.