China Replaces U.S. as World’s Largest Economy, IMF Reports

[marmar]

via truthdig:



Has the era of American economic hegemony finally come to an end?

According to a new IMF report, China has now surpassed the U.S as the world’s largest economy.

The data show that China’s share of the global economy, adjusted for cost of living, is now slightly bigger than that of the United States. China’s gross domestic product is worth $17.6 trillion, when adjusted, compared with $17.4 trillion for the U.S. This was calculated by examining gross domestic product (GDP) alongside cost of living, or purchasing power parity (PPP).

Although this announcement signals an inevitable global shift, the U.S. continues to dominate in other important aspects. In terms of overall size (not adjusted for PPP), the U.S. economy still dwarfs China’s, at $17.4 trillion to $10.4 trillion. ............(more)

The complete piece is at: http://www.truthdig.com/eartotheground/item/china_replaces_us_as_worlds_largest_economy_reports_imf_20141008

[unblock]

1. total gdp adjusted for cost of living? i don't understand the point of this metric

gdp *per capita* adjusted for cost of living, ok, i can see that. my share of the economy relative to what that buys me within that economy.

of course, if looked at it per capita, china has, what, four times as many people as the u.s., so they would be much smaller by that metric.


but the total economy adjusted for the cost of living? i don't see the point, even after reading the explanation.