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China to become world’s biggest economy this year

A World Bank coordinated research has predicted that China will surpass USA to become the largest economy in the world within this year.

USA has been the number one economy in the world since it overtook the UK in 1872.

The International Comparison Programme (ICP), hosted by the World Bank, made the prediction by comparing the real cost of living, known as purchasing power parity or PPPs, considered the best method of comparing the size of economies.

The report was published on Tuesday.

Using this measure, the ICP concluded that the size of the Chinese economy in 2011 was 87% of the US economy, up from 43% in 2005 when the last comparison was made.

“The United States remained the world’s largest economy, but it was closely followed by China when measured using purchasing power parity,” the ICP said in its report.

According to International Monetary Fund, estimations for growth between 2011 and 2014 would put China ahead of the US this year.

Economists previously thought this would not happen until 2019.

India is also expected to move ahead of Japan to become the third largest economy in the world, according to the report.

The report, however, said China’s National Bureau of Statistics, which took part in the study, had rejected the conclusion, saying it had “reservations” about the methodology.

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