America's dominance as the world's largest economy is coming to an end sooner than had originally been projected. According to the International Monetary Fund, the United States will be eclipsed by China in 2016, Marketwatch reported on Monday
The prediction comes amid growing concern over American national debt and a US dollar that appears to be heading into considerable decline.
"The greenback is approaching pre-financial crisis lows and threatening to smash through its all-time low when measured against the world's predominant national currencies," Jeff Cox reported on CNBC
last week. "A combination of factors accounts for the weakness, with the Federal Reserve's easy-money policies, huge national debts and deficits and the consequential possibility of a debt downgrade because of the financial mess in Washington leading the way."
Earlier in April, the IMF had warned that the US needed to derive and implement a "credible strategy"
for solving its national debt challenges, as was reported in Digital Journal
. However, China's massive population, ranked first in the world, is propelling the nation's economy forward on the weight of its improving populace. In comparison, the US total population is roughly a quarter the size of China's.
"Most people aren’t prepared for this. They aren’t even aware it’s that close. Listen to experts of various stripes, and they will tell you this moment is decades away. The most bearish will put the figure in the mid-2020s," Brett Arrends reported in Marketwatch. "But they’re miscounting. They’re only comparing the gross domestic products of the two countries using current exchange rates."
The blow to America's collective ego is likely to be considerable, as the American economy was three times greater than that of China's just a decade ago.