News / Economy

Report: China Could Overtake US Economy This Year

A man yawns in a bus which drives past a construction site in Beijing, China, April 29, 2014.
A man yawns in a bus which drives past a construction site in Beijing, China, April 29, 2014.
VOA News
A new study suggests China's economy has grown faster than previously thought, leading some analysts to predict that China could surpass the United States as the world's biggest economy by the end of the year.

The figures were released Wednesday in a report by the International Comparison Program, which is part of the United Nations.

The ICP evaluates economies based on purchasing power parity, or PPP, which estimates how much money can buy in different countries. Some economists say the method helps more accurately determine a country's relative economic output, since comparisons are complicated by exchange rates.

Using its latest data, which calculated living costs in 2011, the program said China's PPP was 20 percent higher than its previous estimate in 2005. Given China's rate of growth since then, many economists expect China to surpass the U.S. later this year.

In an article titled "Crowning the Dragon," The Economist predicted Wednesday that China will become "the world's pre-eminent country" by the end of 2014. It noted that "the American Century ends, and the Pacific Century begins." The Financial Times and The Guardian also published similar predictions.

But the PPP rate does not take into account a nation's wealth per person. When this is considered, China, with more than 1.3 billion people, is still considered a developing nation and ranks well behind the United States.

China's economy grew strongly at double-digit growth rates for most of three decades before slowing in recent years. In terms of gross domestic product, China is widely expected to overtake the U.S. as the world's biggest economy, but many economists did not expect this to happen until later in the decade.

A government report Wednesday shows the U.S. GDP grew one-tenth of one percent in the first three months of 2014, which is much slower than the final quarter of 2013.  

Data from the World Bank show the U.S. GDP was more than $16 trillion in 2012, while China's was more than $8.2 trillion.  The GDP measures all the goods and services produced in a country.

You May Like

Uganda Court Annuls Anti-Gay Law

Court says law was passed in parliament without enough members present for a full quorum More

Multimedia Thailand Makes Efforts to Improve Conditions for Migrant Laborers

In Thailand, its not uncommon for parents to bring their children to work; one company, in-collaboration with other organizations, address safety concerns More

In Indonesia, Jihad Video Raises Concern

Video calls on Indonesians to join Islamic State of Iraq and the Levant, ISIL More

This forum has been closed.
Comment Sorting
Comments
     
by: Donald Fraser Miles from: Elliot Lake, Canada
April 30, 2014 9:20 AM
China is overtaking the US because the US is limiting its performance. The US seeks high achievement. But it is suspicious of high achievers. The US must permit its supporters unfettered participation in its intellectual and commercial life. Perhaps this is only a subjective personal experience I have had. It seems contrary to my own impression of the US. I would say in the least that the US must remove barriers to participation. China has capitalized in an honest way on this US problem of holding contradictory views on individual achievement.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
In Thailand, Some Efforts to Improve Conditions For Migrant Laborersi
X
Steve Herman
August 01, 2014 6:22 PM
Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video In Thailand, Some Efforts to Improve Conditions For Migrant Laborers

Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video Public Raises its Voice on Power Plant Pollution

In the United States, proposed rules to cut pollution from the nation’s 600 coal-fired power plants are generating a heated debate. The U.S. Environmental Protection Agency, charged with writing and implementing the plan, has already received 300,000 written comments. As VOA’s Rosanne Skirble reports, another 1,600 people are lining up this week at EPA headquarters and at satellite offices around the country to give their testimony in person.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video China Investigates Powerful Former Security Chief

The public in China is welcoming the Communist Party's decision to investigate one of the country's once most powerful politicians, former domestic security chief Zhou Yongkang. Analysts say the move by President Xi Jinping is not only an effort to win more support for the party, but an essential step to furthering much needed economic reforms and removing those who would stand in the way of change. VOA's Bill Ide has more from Beijing.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.