The U.S. may soon lose its status as the world's largest economy much sooner than is expected.
China is on track to pass the United State as the number one economy in the world this year 2014 not 2019 as previously expected. India has pass Japan to grab the third place, based on a new study from the world's experts.
The 2011 International Comparison Program (ICP), which works with the World Bank, evaluate economies using as purchasing power parity (PPP) as basis. It is an estimate of the real living costs. The results
The study shows a new and different results about global economy compared with the last update in 2005. It place China's GDP (gross domestic product) at 87% of the U.S. in 2011 and it said that China and India's economies have more than doubled against that of the U.S.
In the 2005 ICP study, it shows the economy of China at 43% which is less than half the size of the U.S.
Quoting from the report:
"The United States remained the world's largest economy, but it was closely followed by China when measured using PPPs. India was now the world's third largest economy, moving ahead of Japan.
The results indicate that only a small number of economies have the greatest shares of world GDP. However, the shares of large economies such as China and India have more than doubled relative to that of the United States."
China's economy grew yearly at 7.4% in the first quarter of this year, which shows that it is slowing. It was at 7.7% increase in the last quarter of 2013. However, their economic growth continues to outpace that of developed world economies.
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