The U.S. is about to lose its place as the world’s largest economy — a position held since 1872. Economists predicted China would take the lead in 2019, but research by the International Comparison Program into what money can buy in emerging markets reveals otherwise. The ICP suggests that while the U.S. was still ahead in 2011, China followed close behind when estimates of the real cost of living were taken into account. With the IMF estimating that China’s economy has grown 24 percent since 2011, compared to just 7.6 percent growth for the U.S., China is poised to pull ahead this year.
Source: FT (sub)