China to Overtake U.S. Economy by 2032

Re:China to Overtake U.S. Economy by 2032 by sytelus on Tuesday December 26, 2017 @12:38AM (#16007302)

This is not correct as per most of the other leading institutions. By virtually every measure China's economy is either already bigger than US or is going to overtake US within 1-2 years (i..e before 2019). The reason there is bit of uncertainty is because China had devalued Yuan which effectively reduces its GDP even if net purchasing power had been increased. Also, no one truly knows China's GDP except their government.

Here's better data: https://www.weforum.org/agenda/2016/12/the-world-s-top-econo...

Quote from above:

Both the IMF and the World Bank now rate China as the world’s largest economy based on Purchasing Power Parity (PPP), a measure that adjusts countries’ GDPs for differences in prices.

You don't have to be economist to understand this either. You can go to virtually any corner of the Earth, walk in to a shop and find that roughly 50%-80% things in there are made in China. Think about that for a second. There are over 200+ countries in the world, 85% of people are outside China and still half of the stuff is made by just one country. There is often a someone in China making money when a person anywhere on the planet walks in to a shop and buys something. Think about the scale of that GDP now.

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Re:China to Overtake U.S. Economy by 2032 by igravious on Tuesday December 26, 2017 @01:29AM (#16007458)

That's by PPP[0]. The CEBR report is stating that China's economy will be bigger than the U.S. in absolute terms (PPP is a relative measure, look it up) by 2032. That means that population size notwithstanding China could choose to outspend the U.S. dollar-for-dollar on its military or space budget or infrastructure or whatever. You get the idea – the implication is that over times economic might should shift the balance of global power.

[0] https://en.wikipedia.org/wiki/Purchasing_power_parity

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Re:China to Overtake U.S. Economy by 2032 by MarkMc on Tuesday December 26, 2017 @01:04AM (#16007382)

> You can go to virtually any corner of the Earth, walk in to a shop and find that roughly 50%-80% things in there are made in China.

My iPhone was made in China, yet the bulk of the purchase price goes to pay Apple (US) shareholders and employees - very little goes to Foxxconn (China) shareholders and employees.

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