IMF Admits China Has Overtaken The US As The World’s Largest Economy; But Why Is The Media Silent?

[ARMalik]

IMF Admits China Has Overtaken The US As The World’s Largest Economy; But Why Is The Media Silent?

The world is waking up to a new reality post the devastating pandemic that brought everything to a grinding halt. One of them is the rise of China as the undisputed new economic superpower. How Is The US Responding To Chinese President’s Call To “Prepare for War” Over Taiwan? According to the...

eurasiantimes.com

According to the IMF’s World Economic Output 2020 released recently, China has now overtaken the US to become the world’s largest economy.

Yes, you read that right. The International Monetary Fund (IMF), using the more reliable and now widely accepted yardstick, called the Purchasing Power Parity (PPP), has determined China’s economy at $24.2 trillion compared to America’s $20.8 trillion.



The PPP calculation method used by the IMF enables you to compare how much you can buy for your money in different countries. The economists have traditionally been using MER (market exchange rates) to calculate GDP, which doesn’t reflect the real figures.

The MER method is being viewed with extreme suspicion because it underestimates the buying power of the currencies of many countries. As a result, the currencies of many nations are undervalued against the dollar.

With PPP adjustment, IMF estimates China’s economic output outmanoeuvring the US’s by a huge margin. IMF is clear in its report, it says the PPP “eliminates differences in price levels between economies” and thus compares national economies in terms of how much each nation can buy with its own currency at the prices items sell for there.

After the IMF, the CIA also decided to switch from MER to PPP in its annual assessment of national economies. The CIA Factbook notes that “the official exchange rate measure of GDP is not an accurate measure of China’s output; GDP at the official exchange rate (MER GDP) substantially understates the actual level of China’s output vis-a-vis the rest of the world; in China’s situation, GDP at purchasing power parity provides the best measure for comparing output across countries.”

@beijingwalker , @Beidou2020 , @Feng Leng , @FairAndUnbiased, @Place Of Space @Kai Liu @ChineseTiger1986 and other Chinese members.

 

[Dalit]

It is a major sin to overtake grandaddy USA.

 

[beijingwalker]

This is not news, China's goal is to overtake US in nomimal GDP and all measurements of the economy.

 

[Protest_again]

IMF Admits China Has Overtaken The US As The World’s Largest Economy; But Why Is The Media Silent?

The world is waking up to a new reality post the devastating pandemic that brought everything to a grinding halt. One of them is the rise of China as the undisputed new economic superpower. How Is The US Responding To Chinese President’s Call To “Prepare for War” Over Taiwan? According to the...

eurasiantimes.com

According to the IMF’s World Economic Output 2020 released recently, China has now overtaken the US to become the world’s largest economy.

Yes, you read that right. The International Monetary Fund (IMF), using the more reliable and now widely accepted yardstick, called the Purchasing Power Parity (PPP), has determined China’s economy at $24.2 trillion compared to America’s $20.8 trillion.



The PPP calculation method used by the IMF enables you to compare how much you can buy for your money in different countries. The economists have traditionally been using MER (market exchange rates) to calculate GDP, which doesn’t reflect the real figures.

The MER method is being viewed with extreme suspicion because it underestimates the buying power of the currencies of many countries. As a result, the currencies of many nations are undervalued against the dollar.

With PPP adjustment, IMF estimates China’s economic output outmanoeuvring the US’s by a huge margin. IMF is clear in its report, it says the PPP “eliminates differences in price levels between economies” and thus compares national economies in terms of how much each nation can buy with its own currency at the prices items sell for there.

After the IMF, the CIA also decided to switch from MER to PPP in its annual assessment of national economies. The CIA Factbook notes that “the official exchange rate measure of GDP is not an accurate measure of China’s output; GDP at the official exchange rate (MER GDP) substantially understates the actual level of China’s output vis-a-vis the rest of the world; in China’s situation, GDP at purchasing power parity provides the best measure for comparing output across countries.”

@beijingwalker , @Beidou2020 , @Feng Leng , @FairAndUnbiased, @Place Of Space @Kai Liu @ChineseTiger1986 and other Chinese members.

China overtook US in PPP in 2018. It is not new.

 

[Beidou2020]

Nominal GDP is the big one.

 

[Viva_Viet]

There r 600 million Cnese earning less than 140 usd per month, plus abt 290 million Cnese earning less than 281 usd per month, even lower than VN-Luxshare, VN-Samsung workers.... Yes, and CN economy is still No 1

-----

Dozens of young workers, mostly males in their 20s, some pulling luggage, lined up to apply for jobs with a starting salary of 1,950 yuan (US$281) per month.

People Rush for Rice Storage in Hubei Province

There r hundred millions Cnese workers only earn only 281 usd/ month. Ur Govt failed to create good jobs for them. Thats why they desperately trying to enter vn (to work in VN Luxshare wt 430 usd/month) by hiding inside the washing machines :cool: ------ Dongguan Chang An Mattel Toys, one of the...

defence.pk

 

[8888888888888]

hope trump wins re-election, China will reach it even sooner.

 

[redtom]

There r 600 million Cnese earning less than 140 usd per month, plus abt 290 million Cnese earning less than 281 usd per month, even lower than VN-Luxshare, VN-Samsung workers.... Yes, and CN economy is still No 1

-----

Dozens of young workers, mostly males in their 20s, some pulling luggage, lined up to apply for jobs with a starting salary of 1,950 yuan (US$281) per month.

People Rush for Rice Storage in Hubei Province

There r hundred millions Cnese workers only earn only 281 usd/ month. Ur Govt failed to create good jobs for them. Thats why they desperately trying to enter vn (to work in VN Luxshare wt 430 usd/month) by hiding inside the washing machines :cool: ------ Dongguan Chang An Mattel Toys, one of the...

defence.pk

Didn't anyone tell the Vietnamese that minors and full-time wives do not need to work?

 

[Tom99]

This is not news, China's goal is to overtake US in nomimal GDP and all measurements of the economy.

No. You are wrong. China's goal is to grow its economy and improve the lives of the citizens in their country. Bypassing the nomimal/ppp GDP of USA is just a minor byproduct of their main objectives.

 

[Nan Yang]

There r 600 million Cnese earning less than 140 usd per month, plus abt 290 million Cnese earning less than 281 usd per month, even lower than VN-Luxshare, VN-Samsung workers.... Yes, and CN economy is still No 1

-----

Dozens of young workers, mostly males in their 20s, some pulling luggage, lined up to apply for jobs with a starting salary of 1,950 yuan (US$281) per month.

People Rush for Rice Storage in Hubei Province

There r hundred millions Cnese workers only earn only 281 usd/ month. Ur Govt failed to create good jobs for them. Thats why they desperately trying to enter vn (to work in VN Luxshare wt 430 usd/month) by hiding inside the washing machines :cool: ------ Dongguan Chang An Mattel Toys, one of the...

defence.pk

Comrade Viva viet.
Poor people maybe a potential for China's future growth. Usually poorer regions have more potential for development and growth rates are higher. Just like Vietnam.

Anyway the figure you use are disposable income. Already been discussed several times.

 

[powastick]

They can't openly admit it, there are consequences. But obviously they are taking steps to contain China.

 

[redtom]

VN workers assembling Apple products like airpod got the total income is 10,4 millions vnd ( 430 usd) per month

People Rush for Rice Storage in Hubei Province

Thats the average pay for All, including farmers,workers, fastfood staff, waiters etc, not just workers alone.got it ?? No CN investors can hire workers wt just 150 usd per month ( prove it if Im wrong), but if they only open restaurants, then they can hire some waiters wt 150 usd cos most of...

defence.pk

While in CN

Dozens of young workers, mostly males in their 20s, some pulling luggage, lined up to apply for jobs with a starting salary of 1,950 yuan (US$281) per month.

Yeah....and CN is No 1 now, No 1 in jobless number maybe

I guess you keep mentioning the wages of workers in Apple factories as if to show off.
But I can't feel it.Because my monthly salary is about 1,500 dollars, my wife is about 1,000 dollars less. We can only be regarded as very ordinary families in China.

My uncle is a farmer, he grows fruits and his annual income reaches 80,000 US dollars.

 

[CrazyZ]

IMF Admits China Has Overtaken The US As The World’s Largest Economy; But Why Is The Media Silent?

The world is waking up to a new reality post the devastating pandemic that brought everything to a grinding halt. One of them is the rise of China as the undisputed new economic superpower. How Is The US Responding To Chinese President’s Call To “Prepare for War” Over Taiwan? According to the...

eurasiantimes.com

According to the IMF’s World Economic Output 2020 released recently, China has now overtaken the US to become the world’s largest economy.

Yes, you read that right. The International Monetary Fund (IMF), using the more reliable and now widely accepted yardstick, called the Purchasing Power Parity (PPP), has determined China’s economy at $24.2 trillion compared to America’s $20.8 trillion.



The PPP calculation method used by the IMF enables you to compare how much you can buy for your money in different countries. The economists have traditionally been using MER (market exchange rates) to calculate GDP, which doesn’t reflect the real figures.

The MER method is being viewed with extreme suspicion because it underestimates the buying power of the currencies of many countries. As a result, the currencies of many nations are undervalued against the dollar.

With PPP adjustment, IMF estimates China’s economic output outmanoeuvring the US’s by a huge margin. IMF is clear in its report, it says the PPP “eliminates differences in price levels between economies” and thus compares national economies in terms of how much each nation can buy with its own currency at the prices items sell for there.

After the IMF, the CIA also decided to switch from MER to PPP in its annual assessment of national economies. The CIA Factbook notes that “the official exchange rate measure of GDP is not an accurate measure of China’s output; GDP at the official exchange rate (MER GDP) substantially understates the actual level of China’s output vis-a-vis the rest of the world; in China’s situation, GDP at purchasing power parity provides the best measure for comparing output across countries.”

@beijingwalker , @Beidou2020 , @Feng Leng , @FairAndUnbiased, @Place Of Space @Kai Liu @ChineseTiger1986 and other Chinese members.

I think even CIA is shifting to the PPP measure for GDP assessment.

 

[tower9]

China overtook the US in PPP back in 2014. That ain't news. Still a ways to go in terms of nominal.

 

[LeGenD]

This is the case in PPP metric which is not robust.

There are other metrics in which USA is still far ahead (Nominal GDP; GDP per Capita).