Thought for the day

Difficult to Imagine China Twice the Size of the USA?

The reality is much closer than you think


 
Last updated: 3 July 2024
 
Chinese GDP will be more than double that of the US in under a decade, if recent growth rates persist. Economic activity in China is almost certainly already approximately 33% larger than in the USA.

China vs. United States
% Share of Global GDP
Difficult to Imagine China Twice the Size of the USA?
* GDP in Purchasing Power Parity terms with added estimates for the size of the informal economy and adjustments for out-of-date GDP base year data.


Few investment portfolios, business plans or government calculations reflect the large and growing dominance of Chinese economic activity, mostly because of the inappropriate use of market prices to assess the relative size of economic activity, the omission of key data on the shadow economy, and calculating GDP from outdated base years. 

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