China’s Economy Surpassing U.S.? #China #USA

There are a number of reports around Wednesday that China’s economy, by one measure at least, is likely to surpass the U.S. in size sometime this year.

The headlines will surprise many people, used to hearing China’s economy will overtake the U.S. sometime in the 2020s, or even later.

On Wednesday, the International Comparison Program, a statistical project coordinated by the World Bank, announced new data on the size of economies by purchasing power parity that suggests China’s economy is bigger than previously thought.

But the latest news is anything but surprising.

Regular GDP power rankings are compiled by converting a country’s gross domestic product into U.S. dollars at market exchange rates. The U.S.’s economy in 2012 was valued at over $16 trillion, twice the size of China’s, according to World Bank statistics. It’s by these measures that China’s economy won’t overtake the U.S. for a decade or more.

http://blogs.wsj.com/

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