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America is in danger of losing the title of world's largest economy


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GMT 14:43 2014 Wednesday, April 30th : Last Update                     

Study predicts that China obtained the forefront this year

America is in danger of losing the title of world's largest economy

Majeed Abdul Ilah



China, a major global economic power
    • chinaeconomic.jpg
      China, a major global economic power

The United States stands on the brink of losing its position as the largest economy in the world to line up behind China, with an international study suggests that Asian country this year exceeded expectations which assumes that the extracted Beijing Economic forefront of America by 2019.

The United States leads the world's economies since offered to Britain, the birthplace of the Industrial Revolution, in 1872., And the majority of experts and economic analysts predict that China obtained the lead of the United States by the year 2019. Reported as the largest institution in the statistical world. 

But ICP, hosted by the World Bank, to forecast different, based on his calculations of purchasing power, adopted by the majority of government and private institutions, such as the International Monetary Fund. He announced ICP first update of these accounts since 2005. 

Chinese recovery
after a thorough study of the prices of goods and services and the real cost of living, reaching the ICP in New estimates that the purchasing power in developing countries than previously thought. Based on this conclusion, it has increased the size of the economies of the emerging markets, such as the Chinese economy.

Recognizes the international financial institutions generally calculates indicators of purchasing power and the cost of living, as the best way to compare the sizes of different economies of the use of volatile currency exchange rates, which are rarely reflect the true cost of goods and services. Based on these calculations, the IMF estimated that GDP in the United States amounted to 16.2 trillion dollars in 2012, and China's 8.2 trillion dollars. 

The ICP was reached in 2005 that China's economy is less than half of the U.S. economy, and constitute 43 percent of the U.S. economy. But after the adoption of the new methodology and the fact that the growth of the Chinese economy Botaúr much faster, to the extent that the total domestic Alnaúj in China had grown 87 percent higher than in the United States in 2011. 

Based on IMF figures to be the Chinese economy grew by 24 percent during the period between 2011 and 2014 compared to 7.6 percent only is the growth rate of the U.S. economy during this period, China will advance to the United States this year as the largest economy in the world. 

Coup economic
and brought new numbers coup in the map of the global economy, according to a newspaper Financial Times, referring to the growing importance of large countries, middle-income, such as India, made ​​under the new methodology for ICP to third place among the world's economies, after they had been at the center Tenth.

India's economy has doubled and almost twice the 19 percent of the U.S. economy in 2005 to 37 percent in 2011. Comes Russia, Brazil, Indonesia and Mexico in the top twelve first order of the world's economies. In contrast, the high costs and declining growth rates pushed Britain and Japan to Tatia behind the United States a bigger margin than had been separated in 2005. Improved site and a slight improvement relative Germany, Italy remained in the province on its site. 

Egypt the cheapest and the most expensive Switzerland
and the Financial Times newspaper predicted that fuel the new numbers ICP controversy over the management of international financial institutions, such as the World Bank and the International Monetary Fund, which is no longer managed to reflect the balance of economic power in the world. 

A study of ICP that rich countries still account for 50 percent of gross domestic product in the world, even though they constitute only 17 percent of the world's population. The study also found that the most expensive four countries in which to live are Switzerland, Norway, Bermuda and Australia, while the cheapest countries are Egypt, Pakistan, Myanmar and Ethiopia. 

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The US is on the brink of losing its status as the world’s largest economy, and is likely to slip behind China this year, sooner than widely anticipated, according to the world’s leading statistical agencies.

The US has been the global leader since overtaking the UK in 1872. Most economists previously thought China would pull ahead in 2019.

Moving ahead

The figures, compiled by the International Comparison Program hosted by the World Bank, are the most authoritative estimates of what money can buy in different countries and are used by most public and private sector organisations, such as the International Monetary Fund. This is the first time they have been updated since 2005.

After extensive research on the prices of goods and services, the ICP concluded that money goes further in poorer countries than it previously thought, prompting it to increase the relative size of emerging market economies.

The estimates of the real cost of living, known as purchasing power parity or PPPs, are recognised as the best way to compare the size of economies rather than using volatile exchange rates, which rarely reflect the true cost of goods and services: on this measure the IMF put US GDP in 2012 at $16.2tn, and China’s at $8.2tn.


In 2005, the ICP thought China’s economy was less than half the size of the US, accounting for only 43 per cent of America’s total. Because of the new methodology – and the fact that China’s economy has grown much more quickly – the research placed China’s GDP at 87 per cent of the US in 2011.

For 2011, the report says: “The US remained the world’s largest economy, but it was closely followed by China when measured using PPPs.”

China’s crisis is coming – the only question is how big it will be

Financial crisis in China has become inevitable. If it happens soon, its effects can be contained. But, if policy makers use further doses of stimulus to postpone the day of reckoning, a severe collapse will become unavoidable within a few years.

The country is in the middle of by far the largest monetary expansion in history. On one widely used measure, M2, its money supply has tripled in the past six years, an expansion four times as large as that of the US over the same period.



With the IMF expecting China’s economy to have grown 24 per cent between 2011 and 2014 while the US is expected to expand only 7.6 per cent, China is likely to overtake the US this year.

The figures revolutionise the picture of the world’s economic landscape, boosting the importance of large middle-income countries. India becomes the third-largest economy having previously been in tenth place. The size of its economy almost doubled from 19 per cent of the US in 2005 to 37 per cent in 2011.

Russia, Brazil, Indonesia and Mexico make the top 12 in the global table. In contrast, high costs and lower growth push the UK and Japan further behind the US than in the 2005 tables while Germany improved its relative position a little and Italy remained the same.

The findings will intensify arguments about control over global international organisations such as the World Bank and IMF, which are increasingly out of line with the balance of global economic power.


When looking at the actual consumption per head, the report found the new methodology as well as faster growth in poor countries have “greatly reduced” the gap between rich and poor, “suggesting that the world has become more equal”.

The world’s rich countries still account for 50 per cent of global GDP while containing only 17 per cent of the world’s population.

Having compared the actual cost of living in different countries, the report also found that the four most expensive countries to live in are Switzerland, Norway, Bermuda and Australia, with the cheapest being Egypt, Pakistan, Myanmar and Ethiopia.


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Author: Editor: ma Reporter:

Number of readings: 216

05/01/2014 02:24


Tomorrow's Press / follow-up: preparing the U.S. economy to lose his position as the largest economy in the world during the current year, to replace him for the first time the Chinese economy, which is still recorded strong growth in the time that remains his U.S. counterpart, is struggling after the economic crisis that affected him throughout the years.
It is clear from a range of figures from the agencies that the global economic supremacy Chinese will happen before the end of the year 2014, at which time all of the talk about the expectations outweigh the Chinese is expected in 2019, as they talk about what some of the expectations after that date.
The United States sits on the throne of the world economy as the largest and most important economy in the world since 1872, when Britain had turned from the center, and kept it since then and even now.
According to extensive research conducted by the agency economic subsidiary of the World Bank, the measurement of the true costs of living and purchasing power of money could give an indication of the most accurate on the size of the economy in any country, and gives a greater ability to compare the economies in the world, and accordingly, the GDP of the United States reached in year 2012 about 16.2 trillion dollars, and China amounted to 8.2 trillion dollars.
And found the agency (International Comparison Program) in the search, which included calculation of new GDP that the Chinese economy was less than half the size of the U.S. economy in 2005, where he was its size equivalent to only 43% of the size of the U.S. economy, while in the year 2011, the size of the Chinese economy amounted to 87% of his U.S. counterpart, with strong growth registered by Beijing.
According to the research results published newspaper "Financial Times": "For the year 2011, the U.S. economy remains the largest in the world, but China comes immediately after and narrowly, if we adopt a new mathematical formula."
The IMF predicts that China will achieve economic growth overall during the period from 2011 to 2014 by 24%, while expected to record U.S. economy grew during the same period by 7.6%, which means in the end that the Chinese economy will end the year ahead in the size of the economy U.S..
She says, "Financial Times," The superiority of the Chinese economy to its American counterpart will lead to a complete reversal in the global economic landscape, and will change the importance of each state for the economic movement in the world.
According to the data referred to the mathematical formula new, India will be resolved in the third place in terms of the size of its economy in the world, after China to be in the first place, and America in the second, which would have doubled the size of its economy than 19% of the size of the U.S. economy in 2005 to 37% of the size of the U.S. economy in 2011.
It is noteworthy that China was in the month of December last year has overtaken the United States for the first time in its history in terms of oil imports, which come about from the outside, which is read by analysts and economists as an important indicator of industrial growth witnessed by the country, which leads to a rise in demand for fuel.
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The "FATCA" clauses of HR 2847 effective 1 July, 2014 might be the 'straw' that breaks our economic backs.  The personal and commercial reporting demands of our IRS made on foreign financial institutions for all american and business accounts in their possession to the IRS are onerous, yet the possibility of then having a "with holding 30% of assets" that are invested here by foreign investors accounts, both private and institutional, due to possible non compliance may see the 'out flow' of $$ to safer foreign investments by the Trillions and cause the 'fire sale' of assets and the collapse of the securities and stock markets to the extreme damage of all Americans and their personal investments.

  We seem to be a country run by amateurs, incompetents and foolish liars. Either that or it was intentional to destroy America. PY (assets).

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Interesting to note that China will overtake the U.S. Economy as the largest on the planet. The reports that I have read above never really show how the US got into this predicament . Well it doesn't take a rocket scientist to figure this out. If any of you have lost your jobs in recent years to the so called out sourcing at your plants or place of employment, you can thank your CEO and the board members of your company for this.

You have all heard the phrase that China was going to take over the U.S.A. without firing a shot. This what has been happening while the lower class has been trying to eeeck out a living after been being laid off. Blame the CEO's and the pinheads in Washington D.C.

for this happening. The corporations line your politicians pockets with Greenbacks in hopes they will look the otherway when some sort of legislation needs to be voted on that will help these corp. gain the advantage on sending more jobs overseas and the result will be that China will have then take this country over without firing a shot. Also don't forget how much we are into China for our Debt Service.They will be calling it when we least expect it.

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