China overtakes the U.S as the world’s largest economy
Adam Pike, News Editor
9 Oct 2014, 10:23 a.m.
The International Monetary Fund (IMF) has confirmed the Chinese economy is now larger than America’s
According to the IMF’s latest report the Chinese economy is now worth $17.6 trillion, whilst the U.S. economy is worth $17.4 trillion. In percentage terms China’s share of the global economy is 16.48% and the U.S 16.28%. The IMF estimates that by 2019 the Chinese economy will be 20% higher than the U.S.
Tensions between the two superpowers are strained with the U.S. accusing Beijing of manipulating the price of the yuan lower to boost exports.
China is also putting into question the role of the U.S. dollar as the world’s reserve currency by signing an energy deal with Russia which will be settled without the use of the dollar.
Officially the U.S. has 8,500 tonnes of gold, although no official auditing has been undertaken for decades. China last reported their gold reserves in 2009, stating their official reserves stood at 1,054 tones. China is now the world’s largest producer and consumer of gold which has led many analysts to speculate that China’s official gold reserves are significantly higher.