China is now the world’s largest economy according to figures from the International monetary fund(IMF). The Chinese toppled the US after experiencing an acceleration in wealth in recent decades due to rapid industrialization.
According to the IMF report, China’s economy is now worth £11trillion while that of the US stands at £10.8trillion. The Chinese economy is expected to be worth £16.7 trillion by 2019, which is 20% higher than that of the US which is predicted to be £13.8 trillion by that time.
The US has had the world’s biggest economy since 1872 after toppling the British.
The IMF made their findings based on ‘purchasing power parity’ (PPP) which makes adjustments for the fact that goods are cheaper in countries such as China relative to the US, in other words, the cost of living in China is relatively cheaper than the US. This development is an embarrassment to the Obama administration and has ended America’s 142 year rule as the economic ‘Top Dog’.
Other countries in the list are India the third largest economy, followed by Japan,Germany, Russia, Brazil, France, Indonesia and the UK.