For the first time in decades, the U.S. is no longer the largest economy in the world, and China has become number one, the International Monetary Fund says.
The IMF recently released the latest numbers for the world economy, stating that China will produce $17.6 trillion in terms of goods and services-- compared with $17.4 trillion for the U.S.
Just 14 years ago, the U.S. produced nearly three times as much as the Chinese, Dow Jones’ MarketWatch reported.
But each country reports its data in its own currency, according to the IMF website. In order to compare data, each country's statistics must be converted into a common currency. But there are several ways to manage that conversion and each can result in very different answers.
Another measure of an economy’s strength is its “purchasing power parity” or PPP—the rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country.
China now accounts for 16.5% of the global economy when measured in real PPP terms, compared with 16.3% for the U.S.
Prices aren't the same in each country, Business Insider suggests. The same shirt will cost you less in Shanghai than in San Francisco, so comparing countries without taking these factors into account is not always reliable.
Though the average Chinese citizen earns a lot less than the average American, simply converting a Chinese salary into dollars underestimates how much purchasing power that person, and therefore that country, might have.
So the IMF measures both GDP in market-exchange terms, and PPP terms. On the purchasing-power basis, China is overtaking the U.S. right now and becoming the world's biggest economy.
MarketWatch columnist Brett Arends suggests that if you just look at international exchange rates, the U.S economy is still larger than China’s allegedly by almost 70 percent. But, Arends adds, although these measures are commonly cited, they can also be unreliable.
Experts have predicted China’s economy would surpass America’s for years and recent conventional wisdom anticipated the change this year.
China’s economy may now be the world’s largest, but it’s still not the richest. GDP per head is still less than a quarter of U.S. levels, the Financial Times reported.
In the context of the false and misleading interpretations spread by Bemol Retail SRL (“Bemol Retail”) and close media of the judgment of the Amsterdam Court of Appeal dated 7 September 2021, Danube Logistics SRL , as a general investor and operator of Giurgiulesti International...( ) Read all
Let me first congratulate all of you with the 30th anniversary of the independence of the Republic of Moldova. On this occasion one can recall that even before declaring its own independence, Moldova became the first country to recognise the restored independence of the Republic of...( ) Read all
U.S. President Joe Biden proposed a summit meeting with Russian President Vladimir Putin during a telephone call on Tuesday in which he stressed the U.S. commitment to Ukraine's territorial integrity and voiced concern about a Russian military build-up in Crimea and on Ukraine's borders,...( ) Read all
The European Bank for Reconstruction and Development (EBRD) is enforcing rights under its financing and security documents with regards to Danube Logistics Holding BV’s shareholding in Danube Logistics SRL (Danube Logistics), the operator of Giurgiulesti International Free Port in the...( ) Read all
EBA Moldova is following with great concern the latest developments regarding Danube Logistics SRL, the owner and operator of Giurgiulesti International Free Port, the only port of the Republic of Moldova.( ) Read all
The European Bank for Reconstruction and Development (EBRD) intends to fight a legal decision to impose external administration over the assets of Danube Logistics SRL, the operator of Giurgiulesti International Free Port in Moldova.( ) Read all
One August day in the mid-1960s, my parents boarded a bus in the village of Hartopul Mare in the center of Moldova to travel to the capital Chisinau, determined to get a better education and better jobs in the Soviet planned economy. It was a 90-minute trip in a vehicle packed with about 50...( ) Read all
On Thursday 3 December, the Parliament of the Republic of Moldova voted on a number of legislative proposals, including on limitations of Presidential powers, tabled in a hasty and non-transparent manner.( ) Read all
Seven people died from methanol (wood alcohol) poisoning after drinking hand sanitizer at a party in Russia. Nine people, with ages ranging from 27 to 69 years old, were partying when they opted to drink hand sanitizer after running out of alcoholic beverages, according to local Russian...( ) Read all
On 25 August 2020 the Constitutional Court of the Republic of Belarus (thereinafter – the CCRB) adopted a document entitled the “Constitutional Legal Position on the Protection of the Constitutional Order” (Kонституционно-правовaя позиция по...( ) Read all
Leaked documents shed a light on Deutsche Bank's central role in facilitating financial transactions deemed suspicious. Many of these could have enabled the circumvention of sanctions on Iran and Russia.( ) Read all
On 12 May 2020 the Chișinău Appeals Court barred Danube Logistics SRL from transferring funds to its Dutch shareholder Danube Logistics Holding BV. Danube Logistics SRL is the operator of Giurgiulești International Free Port located on the maritime section of the Danube.( ) Read all