Chinese Savings vs. American Spending
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Author: Peter Wong
Earlier this month, the IMF released a new report noting that via Purchasing Power Parity (PPP) calculations, China’s GDP in 2014 is estimated at $17.6 trillion (all dollars in this article are US dollars), surpassing the US’s $17.4 trillion to become the world’s largest economy. MarketWatch subsequently published a recent article titled “It’s Official: America is now No. 2.” The article points out that since Ulysses S. Grant took office as president in 1869, the United States for the first time fell from its leading position in the global economy, to second place. And although long aware of China’s rise, those who have prided themselves on the US’s economic domination are facing an uneasy reality.
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A translated Serbo-Croatian version of this article is available here.