re: Bloomberg: China Economy is now #1 in the world

They are not using GDP to avoid that. Forbes agrees with Bloomberg too.


If you go by GDP, they are #2.

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Gross domestic product is supposed to measure the amount of real stuff -- cars, phones, financial services, back massages, etc. -- that a country produces. If the same phone costs $400 in the U.S. but only $200 in China, China’s GDP is getting undercounted by 50 percent when we measure at market exchange rates. In general, less developed countries have lower prices, which means their GDP gets systematically undercounted.

Economists try to correct for this with an adjustment called purchasing power parity (PPP), which controls for relative prices. It’s not perfect, since it has to account for things like product quality, which can be hard to measure. But it probably gives a more accurate picture of how much a country really produces. And here, China has already surpassed the U.S.

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I, for one, find it shocking that a nation with 4 times as many people as America has a larger economy.

Such a misleading stat. GDP/capita in China is still grindingly poor.

Outside of the cities, china is africa with smaller dick and smaller people.

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I, for one, find it shocking that a nation with 4 times as many people as America has a larger economy.

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I, for one, find it shocking that a publication with a modicum of financial credibility would claim $12.4 trillion exceeds $19.6 trillion, much less that a GDP per capita of $8,836 exceeds $59,495.

Despite Bloomberg's left leanings, I find that degree of journalistic irresponsibility shocking.