China overtakes America as World’s Largest Economy

According to the International Monetary Fund, IMF, China has overtaken the United States as the world’s largest economy. The IMF estimates that the size of the US economy is $17.4tr, while the Chinese economy comes in at $17.6tr, Business Insider reports. China’s share of the global economy is 16.48 per cent, while the United States accounts for 16.28 per cent, the IMF said Tuesday as part of its outlook for the world economic growth.

These figures are adjusted for the relative costs of living in both countries, known as “purchasing power parity.”

In 2005, Chinese economy was less than half the size of US economy. Today, the story has changed.