Aboutme.profsubin: China Must Have Overtaken US Economy In Purchasing Power Parity

Aboutme.profsubin: China Has Overtaken US Economy In Purchasing Power Parity:

Yes, maybe China has overtaken US Economy by purchasing power parity. Due to pandemic, whole global economy has come to an halt, which made China overtaken US Economy in purchasing capacity. 

Economic Output of IMF has predicted Chinese Economy as the largest economy, now. 

Chinese PPP is around US$24.2 trillion as compared to USA US$20.8 trillion.

Economists has dropped the method used traditionally "Market Exchange Rate" method, which never depicts the real figure.

This creates valuation of currencies below par with Dollar. PPP eliminates the differences in price levels and also compares purchasing power of each country that can buy.

They came up with Big Mac Index where Dollar can buy not only in China, but can compare what they can buy in USA. In China, Dollar can buy double than Dollar can buy in USA, Confirm.

Chinese Production Vs American Production:

In 2019, China has produced 99 trillion Yuan of Goods and services. 

1 US Dollar is equal to 6.9 Yuan and in exchange terms,  So Chinese GDP is US$ 14 Trillion when converted to US $ Dollar on market rate terms.

If we compare the purchase of Big Mac In China vs in America, it cost 21.7 Yuan in China whereas it is $5.71 Dollar in USA. 

That means 3.8 Yuan is purchasing same like US$ 1.

So, if we calculate 99 Trillion Yuan, as per the above calculation, we get Chinese PPP as $26 Trillion, which is better than $20.8 Trillion compared with USA. 

Growth Rate:

Chinese economy is growing at 10% for the last 30 odd years, whereas American economy is growing on an average 1.2%. 

Chinese manufacturing sector is pulling all the other sectors to the top. Defence policy is so thrived that it put ahead the expansion agenda on all sides. 

Chinese growth will be taking off from 26.8% in 2021 to 27.7% in 2025. 

Next year, the growth rate of China will be above 8%, IMF economist had proposed. But the media is silent about all this.