REUTERS/Shannon Stapleton Sorry, America. China just overtook the US to become the world's largest economy, according to the International Monetary Fund.

Chris Giles at the Financial Times flagged up the change. He also alerted us in April that it was all about to happen.

Basically, the method used by the IMF adjusts for purchasing power parity, explained here.

The simple logic is that prices aren't the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it's not entirely reasonable to compare countries without taking this into account. Though a typical person in China earns a lot less than the typical person in the US, simply converting a Chinese salary into dollars underestimates how much purchasing power that individual, and therefore that country, might have. The Economist's Big Mac Index is a great example of these disparities.

So the IMF measures both GDP in market-exchange terms and in terms of purchasing power. On the purchasing-power basis, China is overtaking the US right about now and becoming the world's biggest economy.

We've just gone past that crossover on the chart below, according to the IMF. By the end of 2014, China will make up 16.48% of the world's purchasing-power adjusted GDP (or $17.632 trillion), and the US will make up just 16.28% (or $17.416 trillion):


http://finance.yahoo.com/news/china-just-overtook-us-worlds-090801574.html

Good for them,
Same way naija overtook SA yet... I dnt even need 2 start

The foresight of men like Li Xiannian and Jiang Zemin, has finally paid off.

that simply means that the world prefer fake commodities to original ones

very soon Aba would take over from Lagos

American is stil no one,because of d standard of living,d same with south africa,who has higher standard of living than nigeria.

I like that criteria of checking purchasing power instead of GDP

QUESTION

Btw Nigeria and SA, which of these two nations citizens can easily

1) Eat 3 good meals a day

2) Acquire new sets of clothes every month

3) Rent an environmentally friendly apartment

4) Afford good education/ health services




Statistics should include both GDP and Purchasing power of every national minimum wage.

I come book space ni o. Incase nd make una no quote me o.







Obasanjo is my Papa.

Old news. If they were to rebase it properly, based on PPP, it should be almost twice US'.

However, China isn't ready to take on the US yet. Just let them keep growing, till they are ready to take the crown. Things are going to get pretty interesting in the next decade. The Chinese don't forget easily.

.

And yet china is still referred to as a developing nation! I wonder wat their economy will be lyk wen it becomes a developed nation

Ezedon:
that simply means that the world prefer fake commodities to original ones

fake what? If you want original goods from China...you get it! But Africans want cheap commodities.

The

A big congratulations to China!

This is the success result a country gets when it has a no-nonsense leadership with zero tolerance to corruption and a massive hardworking population.

Nigeria! This is a lesson for you! We have the resources, we have the population and we have hardworking folks who will persevere to the last breath until success is achieved.

But unfortunately we lack good leadership. We lack selfless leadership. What we have are voracious and rapacious leaders who are only concerned with stealing as much as they can for themselves and their family.

What we have are leaders whose only objective when they attain leadership positions is how to perpetuate themselves in power.

The billions that are being looted in Nigeria from the Federal Govt, to the states to the Local government if put to right use will transform this country and set us on an enviable position in the global stage.

We need to do all we can to stamp out corruption in this country! That is what is killing us and drawing us back! Given our resources and our die-hard spirit, there is no reason why we should not have constant power supply, good roads, good schools, standard hospitals, low unemployment, etc.

I am seriously and particularly pained about the power issue. As I am typing this post now (around 12 am in Lag) different generators in my street (mine included) are making a hell of a noise, disturbing my peace.

Why should we be crawling when we can be flying??

I once read an article some years back, when China became the 2nd largest economy on how long it will take them to overtake the US. I cant remember the figure the article gave then, but it was quite a long time. I was seriously surprised when I read this news on the internet today that they are now the largest economy using PPP (Purchasing Power Parity) as the yardstick, I had to do some browsing to confirm from other sources before believing.

The China story is a perfect example of someone who refused to crawl, walk, run, but is now flying!

Nigeria! When are we going to stop crawling and start flying?!

optimumprimus:
the UK is surviving on past glory and on life support . I was very disappointed when i visited twice within the last 2 years . too much poverty there plus poor infrastructure. The UK is basically a 2nd world country based on my first hand observation. more like Londonistan . although there are a few nice areas in the UK.
when i visited other cities such as liverpool,birmingham and the rest,my heart was filled with sadness, and I Thought to myself "why did the british let in so many dirty third world immigrants to destroy their country ? "
I live in Portland,Oregon the best city in the greatest country in the world .

Lol, good for you especially when you are from a country with places that have murder rates on the same level as Mogadishu. Camden, Newark, Philly, South Side Chicago, Flint, Detroit etc. Just too many to name, and all are on Mogadishu's level lol.

mainheart:
very soon Aba would take over from Lagos

in ur dreams ote!

agabusta:
A big congratulations to China!

This is the success result a country gets when it has a no-nonsense leadership with zero tolerance to corruption and a massive hardworking population.

Nigeria! This is a lesson for you! We have the resources, we have the population and we have hardworking folks who will persevere to the last breath until success is achieved.

[b]But unfortunately we lack good leadership. We lack selfless leadership. What we have are voracious and rapacious leaders who are only concerned with stealing as much as they can for themselves and their family.

What we have are leaders whose only objective when they attain leadership positions is how to perpetuate themselves in power.

The billions that are being looted in Nigeria from the Federal Govt, to the states to the Local government if put to right use will transform this country and set us on an enviable position in the global stage.

We need to do all we can to stamp out corruption in this country! That is what is killing us and drawing us back! Given our resources and our die-hard spirit, there is no reason why we should not have constant power supply, good roads, good schools, standard hospitals, low unemployment, etc.

I am seriously and particularly pained about the power issue. As I am typing this post now (around 12 am in Lag) different generators in my street (mine included) are making a hell of a noise, disturbing my peace.

Why should we be crawling when we can be flying??[/b]

I once read an article some years back, when China became the 2nd largest economy on how long it will take them to overtake the US. I cant remember the figure the article gave then, but it was quite a long time. I was seriously surprised when I read this news on the internet today that they are now the largest economy using PPP (Purchasing Power Parity) as the yardstick, I had to do some browsing to confirm from other sources before believing.

The China story is a perfect example of someone who refused to crawl, walk, run, but is now flying!

Nigeria! When are we going to stop crawling and start flying?!

The part bolded is the crust of the matter! But to the Jonathanians who celebrate mediocrity and patented failure,they will quickly tell you that China is 500 years old hence we should live with the present corruption-riddled economy like that


But we have a chance to remedy the wrongs and change the course of this Nation by voting for Buhari in 2015

soroptimist:


The part bolded is the crust of the matter! But to the Jonathanians who celebrate mediocrity and patented failure,they will quickly tell you that China is 500 years old hence we should live with the present corruption-riddled economy like that


But we have a chance to remedy the wrongs and change the course of this Nation by voting for Buhari in 2015

I just created this thread for G.E.J followers

www.nairaland.com/1939834/prayer-g.e.j-supporters#26983401

Could you believe that have goten 27 views with just only 3 comments.


They aren't loyal btw.



Gej till 2015

#teamFreshair2015

thank God. ..

mainheart:
very soon Aba would take over from Lagos

If Aba or Abia or the eastern Nigeria solves the electricity supply issue and sea port issue in onitsha or Aba then the economy of the east would be growing at double digit rate and within 5 to 7 years Aba would over take lagos. The reverse migration which started in the 90s would begin.

There 4 major issues the east should address urgently as far as infrastructure is concerned, power generation. International sea port,refinery and railway


Next comes Indian economy

na today?

this has been trending long before now.

Wonderful china.
Probably has the best set of leaders in the world.
Thinking of it,.i think democracy is nonsense.
All it does is to give too much power to moronnic citizens.

USA over to you

.

It was expected. China with a population of 1.6 billion and a growing economy at the rate of about 10 percent per annum steady for 20 years is not only predicted to surpass the US but also set a record as the biggest economy ever in the world.
The interesting thing is that China is still a third world country.
It's a good to know that Africa have now shifted their attention to China for economic cooperation. It's better for developing countries to trade together among themselves than developed countries. Since China is a developing country, the benefit of trade with Africa would be mutually beneficial to all.
China is the real deal.

UnimkeAk:
Good for them,
Same way naija overtook SA yet... I dnt even need 2 start

And how much better is Nigeria compared to South Africa?
How much better is China compared to the US.

Will this stop Nigerians from scrambling for American visas and switch to China instead

Nigeria overtook S.A and their Country is still miles better.

There's more to this whole issue than the declaration "#*@0's economy overtakes %@=*#".

F117A:
Wonderful china.
Probably has the best set of leaders in the world.
Thinking of it,.i think democracy is nonsense.
All it does is to give too much power to moronnic citizens.

I usually like your posts but I have to tell you I find this post moronic.So who gets to determine which citizens are moronic.

The secret of China lies solely on her economic self reliance(their ability to produce/manufacture whatever they consume),and also export.

Am happy,Igboland is towing that line of China,especially,Aba,Onitsha and Nnewi.
Igbos has had a long standing business/ecomonic relationship,and it has so far materialized positively,and will surely improve. Greater,to make Igboland,the symbol of new Africa.

EMANY01:


And how much better is Nigeria compared to South Africa?
How much better is China compared to the US.

Those are exactly my thoughts.

EMANY01:


And how much better is Nigeria compared to South Africa?
How much better is China compared to the US.

You got my points, totally