Why is China’s economy already larger than USA’s?
It’s because of PPP GDP.
That is, China’s GDP of $18 trillion can buy more than US’ $26 trillion.
Example: Look at the cost of bread, rice, eggs and milk in India:
🔹1 lb of bread: $0.63
🔹1 kg of rice: $1.07
🔹12 eggs: $1.30
🔹1 litre of organic milk: $1.50
Note that these are prices for delivery to home. So, if you go shopping in person, it will be cheaper!
PPP = Purchasing Power Parity
Thus, China’s PPP GDP is $33 trillion!
It’s because of PPP GDP.
That is, China’s GDP of $18 trillion can buy more than US’ $26 trillion.
Example: Look at the cost of bread, rice, eggs and milk in India:
🔹1 lb of bread: $0.63
🔹1 kg of rice: $1.07
🔹12 eggs: $1.30
🔹1 litre of organic milk: $1.50
Note that these are prices for delivery to home. So, if you go shopping in person, it will be cheaper!
PPP = Purchasing Power Parity
Thus, China’s PPP GDP is $33 trillion!
China PPP GDP in 2022:
$30 trillion
$30 trillion
The PPP metric is used by the IMF and even the CIA to measure the economies.
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