China could become the world's top economic power in late 2014

Posted May 1, 2014 by Igor I. Solar
A study by the International Comparison Program (ICP) carried out on behalf of the World Bank published on April 30, 2014, notes that China could overtake the U.S. and become the leading economic power in the world later this year.
High density high rises and busy highways in Shanghai  China. With about 17 million people  Shanghai...
High density high rises and busy highways in Shanghai, China. With about 17 million people, Shanghai is one of the most populous cities in the world. Population density: 6,845 / square Km.
The ICP study analyzes economies ranging from city-states and small islands to large and diverse economies such as Brazil, China, India, Russia, South Africa, and the United States.
China reaching the first place among the world economies was something expected by experts. The surprise is that it was not anticipated that it could happen so soon. The International Monetary Fund (IMF) had predicted that China could lead world economies by 2029.
The ICP research bases the new prediction on economic performance in relation to the real cost of living and purchasing power, not in data in absolute terms of Gross Domestic Product (GDP).
A recent analysis of this type made almost ten years ago, in 2005, concluded that the economic performance of China was less than half that of the U.S. However, new figures released on April 30 show a significant economic recovery in China. In 2011, the Asian country reached 87 percent of the U.S. purchasing power, while its economy grew at a faster pace than that of the U.S.
Chinese currencies
Chinese currencies
Based on this study, experts concluded that China could become the world's leading economic power in late 2014. "The United States remains the largest economy in the world, but China is following closely in regard to purchasing power," says the World Bank’s report.
Among other important findings, while discussing the relative growth of the 12 world’s largest economies, the report indicates that “India went from the 10th largest economy in 2005 to the third largest in 2011. The economies of Japan and the United Kingdom became smaller relative to the United States, while Germany increased slightly and France and Italy remained the same. The relative rankings of the three Asian economies — China, India, and Indonesia — to the United States doubled, while Brazil, Mexico, and Russia increased by one-third or more.”