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

Scotland Vote Raises Questions of International Law

Experts say self-determination, as defined and protected by international law, confined narrowly to independence movements in process of de-colonization More

Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

Conservationists hail ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015 More

Annual Military Exercise Takes on New Meaning for Ukraine Troops

Troops from 15 nations participating in annual event, 'Rapid Trident' in western Ukraine 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.
Russian Economy Reeling After New Western Sanctionsi
X
September 18, 2014 2:28 AM
A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Russian Economy Reeling After New Western Sanctions

A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Belgian Researchers Discover Way to Block Cancer Metastasis

Cancer remains one of the deadliest diseases, despite many new methods to combat it. Modern medicine has treatments to prevent the growth of primary tumor cells. But most cancer deaths are caused by metastasis, the stage when primary tumor cells change and move to other parts of the body. A team of Belgian scientists says it has found a way to prevent that process. Zlatica Hoke has more.
Video

Video Mogadishu's Flood of Foreign Workers Leaves Somalis Out of Work

Unemployment and conflict has forced many young Somalians out of the country in search of a better life. But a newfound stability in the once-lawless nation has created hope — and jobs — which, some say, are too often being filled by foreigners. Abdulaziz Billow reports from Mogadishu.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.
Video

Video China Muslims Work to Change Perceptions After Knife Attacks

China says its has sentenced three men to death and one woman to life in prison for a deadly knife attack in March that left more than 30 dead and 140 injured. Beijing says Muslim militants from China's restive western region of Xinjiang carried out the attacks. Now, more than six months after the incident, residents in the city are still coping with the aftermath. VOA's Bill Ide has more from Kunming.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7718
JPY
USD
107.32
GBP
USD
0.6125
CAD
USD
1.0974
INR
USD
60.919

Rates may not be current.