Archive for the ‘Purchasing Power Parities’ Category

China’s Economy: Not So Fast, Jack

December 19, 2007

Investors Business Daily
December 18, 2007

Competition: The common wisdom is that China‘s large and fast-growing economy could overtake the U.S. as soon as 2012. Not so fast. New data suggest China’s not quite as big as economists once thought.

The World Bank’s latest estimates for the global economy contained a stunner of a statistic: China accounts for just under 10% of the world’s total output — or about 40% smaller than thought.

At $5.3 trillion based on 2005 data, China’s economy is still No. 2. But it has considerably more ground to make up before passing the U.S. in absolute size — if, in fact, it should ever do so. Total world output in 2005 was $55 trillion. The U.S. produced $12.4 trillion of that — with a population only one-fourth the size of China’s.

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