IMF and World Bank corrects Purchasing power parity GDP by about 25% for China and India which adds a Germany of GDP to China and makes China number...

The 2011 World Bank International Comparison Program are the most authoritative estimates of what money can buy in different countries. In 2005, the ICP thought China’s economy was 43 per cent of the US GDP. Because of the new methodology – and the fact that China’s economy has grown much more quickly – the research placed China’s GDP at 87 per cent of the US in 2011. The IMF expecting China’s economy to have grown 24 per cent between 2011 and 2014 while the US is expected to expand only 7.6 per cent, China is likely to overtake the US this year.

India becomes the third-largest economy having previously been in tenth place. The size of its economy almost doubled from 19 per cent of the US in 2005 to 37 per cent in 2011.

Using the 2005 GDP purchasing power parity China had 75% of the GDP of the US in 2012 and about 70% in 2011. The 2011 PPP numbers are a 25% increase. The Telegraph UK Ambrose Evans-Pritchard and Clyde Prestowitz talked about China never catching the USA on GDP (even PPP GDP). They were wrong and wrong in articles in 2013.

Ben Chu wrote less than two months ago – checking the International Monetary Fund’s latest forecasts I [Ben Chu] noticed that the great oriental sorpasso [China passing the US on PPP GDP] has, apparently, been put on hold. What happened to China overtaking the US? It happens this year in 2014 with the 2011 ICP PPP GDP adjustments. The 2005 comparisons were wrong because they used the higher prices in major cities like Shanghai.

China’s IMF per capita GDP 2005 PPP was $10,695 in 2014 but will now be $13,300 GDP per capita with 2011 PPP. This is past Brazil’s per capita PPP GDP.

China would have about $20,000 per capita PPP GDP in 2019 which is about the level of Mexico.

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