China overtook US to become the world’s largest economy in PPP terms

Oct 31, 2014 18:50 IST

China in October 2014 overtook the US to become the world’s largest economy in Purchasing Power Parity (PPP) terms. This was revealed by the October 2014 update of the International Monetary Fund (IMF).

According to IMF estimation, as of October 2014, China’s GDP in PPP terms stood at 17.6 trillion US dollars and constituted 16.48 percent of the World GDP.

On the other hand, the US GDP on PPP basis stood at 17.4 trillion US dollars and constituted 16.28 percent of World GDP.

India stood at the third place in the global economy and its GDP on PPP basis was 7277.279 billion US dollars which is 6.8 percent of world GDP.

Earlier in 2005, China economy was less than half the size of the US economy. Now the IMF projects that China economy will be 20 percent bigger than that of the US by 2019.

China remained the biggest foreign holder of the US government debt which has holding of an estimated 1.27 trillion US dollars of US treasury bonds.

Is this article important for exams ? Yes225 People Agreed
Read more Current Affairs on: China , the US , GDP , PPP , Purchasing Power Parity , IMF

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