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

For Lebanon-based Refugees, Desperation Fuels Perilous Passage

In a war that has caused an estimated three million people to flee Syria, efforts to make perilous sea journey in search of asylum expected to increase More

South African Brewer Tackles Climate Change

Mega-brewer SAB Miller sent delegates to climate summit in Peru, says it is one of many private companies taking their own steps to fight climate change More

Indonesia Reports Increase in Citizens Joining Islamic State

Officials say more than 350 of its citizens are now in Syria or Iraq to fight with Islamic State - 50 more than last month 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.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8033
JPY
USD
117.19
GBP
USD
0.6372
CAD
USD
1.1634
INR
USD
63.622

Rates may not be current.