China overtakes US as world's biggest economy

Chinese deputy of International Monetary Fund says China will focus on emerging industries as it grows

China overtakes US as world's biggest economy

World Bulletin/News Desk

China will focus on emerging industries linked to climate change, the deputy of the International Monetary Fund said Thursday, following a report that the country had overtaken the U.S. as the world’s biggest economy.

The IMF reported Wednesday that the overall size of the Chinese economy would surpass that of the U.S. by the end of the year, reaching $17.63 trillion compared to the U.S.’s $17.41 trillion economy.

In an interview with CCTV, Zhu Min, the deputy managing director of the IMF and a former deputy governor of the People’s Bank of China, said: “The kind of issues when you’re looking forward… There are new industries - energy efficiency, clean energy, climate change related industries, high tech in manufacturing - those are new areas for China and will lead Chinese manufacturing going forward.”

Rapid industrialization over the last 30 years has greatly increased wealth in China, with the country enjoying double-digit growth up to the worldwide recession as industrialization and economic reforms turned the communist-run country into an economic giant.

The IMF’s estimates show China ahead of the U.S. for gross domestic product based on purchasing power parity.

This year China reached 16.48 percent of the world’s purchasing power adjusted GDP – recognized as the best way of comparing national economies - while the U.S. reached 16.28 percent, according to the IMF.

However, the U.S. economy is still bigger than China’s in terms of real GDP with an economic output of $16.8 trillion against China’s $10.4 trillion.

The U.S. overtook Britain as the biggest global economy in 1872.

 

Last Mod: 09 Ekim 2014, 14:34
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