Who Has the World’s No. 1 Economy? Not the U.S.

Please see the source for additional charts.

 

The wear and tear doesn’t help. Photographer: Kurt Wittman/UIG via Getty Images

 

By the most measures, China has passed the U.S. and is pulling away.

What’s the most powerful country in the world? There’s a good case to be made that it’s China.

There are many kinds of power — diplomatic, cultural, military and economic. So an easier question to ask is: What’s the world’s largest economy? That’s almost certainly China.

Many might protest when hearing this. After all, the U.S. still produces the most when measured at market exchange rates:

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Erdoğans Transition

BERLIN/ANKARA (Own report) – The German government is negotiating new German Turkish arms deals, as was confirmed by the German Ministry of Economics. Brigitte Zypries (SPD), Minister of the Economy, spoke with the CEO of Rheinmetall weapons manufacturer about upgrading the Turkish Leopard battle tank. “In principle,” such deals with NATO partners “can not to be restricted,” according to Berlin. The German government is also seeking to re-invigorate German-Turkish economic cooperation, to strengthen bilateral relations. Germany does not want to loose Turkey as a “bridge” connecting Germany and the EU to the Middle East. Under President Recep Tayyip Erdoğan, Ankara is not only strengthening the country’s economy and, in the long run, make it one of the world’s top ten economies (“Vision 2023”), he is also planning to transform the country into an independent regional power, forming alliances as it chooses – no longer dependent on the western states. The reorientation of its foreign policy is accompanied by the country’s transformation into a presidential dictatorship. Continue reading

The new multilateral financial architecture

The announcement that major European powers will join the AIIB as founding members means the bank is now clearly accepted as a tangible game changer in the multilateral financial architecture. The formidable intentions of AIIB and the new transnational corridors project are both a challenge and an opportunity for India

China-promoted Asian Infrastructure Investment Bank (AIIB) has taken the world by surprise. AIIB, dismissed just a few months ago by western countries as another flamboyant plan by China, is now clearly accepted as a tangible game-changing development in the multilateral financial architecture. Continue reading

China’s Economy Surpassed U.S. … a Long Time Ago

Who contributed most to global growth?

 

We reported in 2012 that China might have already surpassed the U.S. in terms of PPP as of 2010.  The same year, China became the world’s largest trader. And in October, we noted that China had officially surpassed America in PPP … citing the same numbers that Marketwatch cited today. Continue reading

It’s official: America is now No. 2

Hang on to your hats, America.

And throw away that big, fat styrofoam finger while you’re about it.

There’s no easy way to say this, so I’ll just say it: We’re no longer No. 1. Today, we’re No. 2. Yes, it’s official. The Chinese economy just overtook the United States economy to become the largest in the world. For the first time since Ulysses S. Grant was president, America is not the leading economic power on the planet.

It just happened — and almost nobody noticed. Continue reading

China Just Overtook The US As The World’s Largest Economy

China US economies

Adjusted for purchasing power, the IMF thinks China’s economy is now the world’s largest.

 

Sorry, America. China just overtook the US to become the world’s largest economy, according to the International Monetary Fund.

Chris Giles at the Financial Times flagged up the change. He also alerted us in April that it was all about to happenContinue reading

Russia breaks into top 5 world economies, displacing Germany

Russia has overtaken Germany as the fifth largest economy in terms of purchasing power parity, according to the latest World Bank ranking that measures 214 economies based on their 2012 GDP performance.

Russia’s oil and export driven economy is ranked fifth amongst the top ten economies in the world with $3.4 trillion in GDP. In 2011, Germany surpassed Russia in GDP with $3.227 trillion compared to Russia’s $3.203 trillion. In 2005, Russia was in eighth place.

Rank Country Purchasing Power Parity
1 United States $15.6 trillion
2 China $12.4 trillion
3 India $4.8 trillion
4 Japan $4.5 trillion
5 Russia $3.4 trillion
6 Germany $3.3 trillion
7 Brazil $2.4 trillion
8 France $2.4 trillion
9 United Kingdom $2.3 trillion
10 Mexico $2.0 trillion

The report was published last week in an annual ranking of GDP. The World Bank also updated their ranking of countries in terms of gross national product (GNP) per capita, grouping Russia in the ‘high income’ nation block, with individual yearly income of $12,616 or more. Continue reading