Submission + - China officially became the world's largest economy, ahead of the United States
mrspoonsi writes: For the first time in 150 years, the USA has lost its title of the largest economy in the world to China. China officially became the world’s largest economy, ahead of the United States, according to the International Monetary Fund (IMF). According to the latest figures of the International Monetary Fund (IMF) just released in December 8th, 2014, China has come ahead the United States as the world’s largest economy. China’s GDP will indeed reach 17600 billion in 2014 against 17400 billion for the United States. These data are calculated using the method known as “purchasing power parity”, which is economically significant. It measures the purchasing power of different currencies in a common unit as opposed to changes in exchange rates. Now China represents 16.5% of the global economy in terms of real purchasing power, ahead of the US, 16.3%. According to IMF estimates, the gap should continue to widen in the coming years. By 2019, China would reach more than 26,800 billion of national wealth, against just 22,000 billion for the United States. The United States had become the leading economic power in 1872 after overtaking Britain.