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China may be bigger economy than US within two years

Posted By admin On November 10, 2010 @ 10:06 am In World News | Comments Disabled

Jeremy Warner
London Telegraph
Nov 10, 2010

Here’s a finding that will have any red-blooded American spluttering into his cornflakes. According to the Conference Board, a highly respected economic research association, China will overtake the US as the world’s biggest economy by 2012, or within two years.

OK, so in dollar terms, that’s obviously not going to be the case. It will be a lot longer than two years before China overtakes the US on that measure. But in terms of purchasing power parity, according to the Conference Board’s latest world economic outlook [1], China is already nearly there, and by 2020 will have reached a size of output which is nearly half as big again as the US.

Here’s the Wkipedia link explaining what PPP is
, but broadly speaking the idea is to measure output according to the volume, not the price of goods and services produced. The assumption made is that identical goods will have the same price in different markets. In practice, this is obviously not the case. A taxi ride in Beijing, for instance, will cost you approximately a tenth of what it costs in London. But it is essentially the same service.

In any case, in PPP terms, the Conference Board’s projections show China as 24.1 per cent of world output by 2020, and the US at just 14.8 per cent.

Full article here [2]

China may be bigger economy than US within two years  150410banner1 [3]


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URLs in this post:

[1] the Conference Board’s latest world economic outlook: http:///

[2] Full article here: http://blogs.telegraph.co.uk/finance/jeremywarner/100008581/china-may-be-bigger-economy-than-us-within-two-years/

[3] Image: http://infowars-shop.stores.yahoo.net/inemnewwoord.html

[4] China overtakes Japan as world’s second-largest economy: http://www.prisonplanet.com/china-overtakes-japan-as-worlds-second-largest-economy.html

[5] Report: Chinese economy will overtake U.S. within four years: http://www.prisonplanet.com/report-chinese-economy-will-overtake-u-s-within-four-years.html

[6] China may not overtake America this century after all: http://www.prisonplanet.com/china-may-not-overtake-america-this-century-after-all.html

[7] Shares tumble across globe as figures reveal U.S. economy shrank 6% in last quarter – the fastest rate in 25 years: http://www.prisonplanet.com/shares-tumble-across-globe-as-figures-reveal-us-economy-shrank-6-in-last-quarter-the-fastest-rate-in-25-years.html

[8] An Economy Bigger than Russia, Brazil, Canada, India or Spain Is About to Default: http://www.prisonplanet.com/an-economy-bigger-than-russia-brazil-canada-india-or-spain-is-about-to-default.html

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