FINANCIAL TIMES: …After extensive research on the prices of goods and services, the [ International Comparison Program] concluded that money goes further in poorer countries than it previously thought, prompting it to increase the relative size of emerging market economies…
In 2005, the ICP thought China’s economy was less than half the size of the US, accounting for only 43 per cent of America’s total. 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.
With 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… (more)
