China to overtake US economy; India trumps Japan

[I AM NOT THAT GUY 5,715]

China is set to overtake the U.S. as the world's number one economy, while India has jumped into third place ahead of Japan, according to a new study from the world's leading statistical agencies.

The 2011 International Comparison Program (ICP), which involves the World Bank, assesses economies based on purchasing power parity (PPP), an estimate of the real living costs. The results revealed on Wednesday paint a new and different picture of the global economy compared with the last update in 2005.

The research puts China's gross domestic product (GDP) at 87 percent of the U.S. in 2011 and says the Chinese and Indian economies have more than doubled relative to that of the U.S. In the 2005 study, the ICP believed China's economy was less than half the size of the U.S., at 43 percent.

"The United States remained the world's largest economy, but it was closely followed by China when measured using PPPs. India was now the world's third largest economy, moving ahead of Japan," the report said.

It added: "The results indicate that only a small number of economies have the greatest shares of world GDP. However, the shares of large economies such as China and India have more than doubled relative to that of the United States."

http://www.cnbc.com/id/101626562?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=101626562%7CChina%20to%20overtake%20US%20econ

[I AM NOT THAT GUY 5,715]

[Sousuke 1,214]

Many economists believe China's economy is mirroring Japan's economic growth - IE A few decades of insane growth, followed by 5 or 6 years of normal growth at 4-5% followed by the wall.

If I were to compare them by year I would say they are in the early 1980s of the Japanese economy where growth started to cool slightly.

[LibCampFireClub 635]

China's growth is no accident. There are thousands of brilliant economists over there who take advantage of America's current weakness. China is also openly manipulating their currency. They take advantage of how America is currently unable to compete in many areas of manufacturing due to the increasing number of regulations and restrictions placed on American business. China is so in the face of America and there is not a peep out of Washington to stop it. Oh yeah, it can and should be stopped. But hey, Washington just stood by and watched as Putin invaded the Ukraine.

Edited May 1, 2014 by ExExpat

[Sousuke 1,214]

China's growth is no accident. There are thousands of brilliant economists over there who take advantage of America's current weakness. China is also openly manipulating their currency. They take advantage of how America is currently unable to compete in many areas of manufacturing due to the increasing number of regulations and restrictions placed on American business. China is so in the face of America and there is not a peep out of Washington to stop it. Oh yeah, it can and should be stopped. But hey, Washington just stood by and watched as Putin invaded the Ukraine.

I've read recently actually that now China can only manufacture on average 97 cents to the dollar compared to in the US without even including transportation.

[spookyturtle 9,465]

1.4 billion people. It should be ahead of the US. Ditto for India.

[Mr. Big Dog 10,747]

1.4 billion people. It should be ahead of the US. Ditto for India.

Yeah, I'm not worried about China or India either. Good that their economies are growing and their people start doing better overall. These countries both still have a long way to go to get anywhere near where the industrialized nations are. And they'll hit the same roadblocks and hurdles that everyone else has hit. All that infrastructure they're stomping out of the ground now needs to be maintained down the road. That limits what new infrastructure they will be able to stomp out of the ground tomorrow. Their competitive edge in the world is fast disappearing. So everything starts to slow down. No, I'm not worried.

[spookyturtle 9,465]

Yeah, I'm not worried about China or India either. Good that their economies are growing and their people start doing better overall. These countries both still have a long way to go to get anywhere near where the industrialized nations are. And they'll hit the same roadblocks and hurdles that everyone else has hit. All that infrastructure they're stomping out of the ground now needs to be maintained down the road. That limits what new infrastructure they will be able to stomp out of the ground tomorrow. Their competitive edge in the world is fast disappearing. So everything starts to slow down. No, I'm not worried.

I'm not worried either. The air pollution will probably kill most of them anyway.

[Jacque67 7,328]

I'm not worried either. The air pollution will probably kill most of them anyway.

+1

[Neonred 3,562]

I've read recently actually that now China can only manufacture on average 97 cents to the dollar compared to in the US without even including transportation.

Do you really believe that?

[Mr. Big Dog 10,747]

Do you really believe that?

http://www.businessweek.com/articles/2014-04-25/china-vs-dot-the-u-dot-s-dot-its-just-as-cheap-to-make-goods-in-the-u-dot-s-dot-a

[one...two...tree 2,762]

Prison labor, relaxed safety and environmental regulations for the win!