It’s official – the US economy is now #2 in the world. If it isn’t obvious already, China took the lead this year.
The International Monetary Fund released it’s latest economic report.
The IMF oversees the international monetary system and monitors the financial and economic policies of its members. It keeps track of economic developments on a national, regional, and global basis, and reports annually.
In terms of real purchasing power, China now represents 16.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the global economy, whereas the US represents 16.3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. To be fair the is a difference of 0.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, however this shows the growing economies in Asia. India comes in third at 7.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}.
The last time that the US slid from the first spot was when Ulysses S. Grant was president! In the short term this won’t change much, but the long term implications. Economic power has always been a strong indication of political and military power. Britain, Spain, France, Rome… they all were once on top of the world – but when their economies declined, so did their power and influence.
Will history repeat itself? Only time will tell.