According to the United Nations Statistical Commission andWorld Bankand other international organizations revealed that the new round of international comparison projects (icp) is almost complete, and it is expected that a new exchange rate of national currencies against the United States dollar will be available early next year. icpIt is an international statistical activity aimed at eliminating the impact of exchange rate fluctuations on the exchange rate of currencies and measuring the amount of currency required to purchase a basket of goods and services within different countriesPrice leveldifferences, and drawnPurchasing powerThe new ratio after conversion.
China has been involved since 1993icpThis is the seventh time that China has participated in the survey. icpThe process of the survey includes harmonized standards and methodologies, and the investigators work by collecting and comparing data from different countries andEconomymetrics to get accurate ratios. Through the investigation of goods and services in each country,icpAble to provide worldwidePurchasing powerExchange ratio, for the internationalEconomyComparisons and policy development provide accurate and reliable data support.
World BankThe public database shows that in 2022, the Chinese yuan and the US dollarPurchasing powerThe conversion factor is 399, which means 399 RMBPurchasing powerEquivalent to 1 US dollar, indicating the currency of ChinaPurchasing powerRelatively strong. Compare this to 2017Purchasing powerThe exchange factor is 418, showing the Chinese currencyPurchasing powerA slight decrease relative to the US dollar. World BankBased on the difference in inflation between China and the United States, the exchange factor from 2018 to 2022 is calculated, of which the exchange factor for 2022 is 399, which further confirms the high inflation in the United States to the dollarPurchasing powerSituations that lead to real reductions.
icpThe results of the survey for the stateEconomyDevelopment and international standing are of great importance. According to the latest exchange rate, China's GDP in 2022 is 12102 trillion yuan, 3025 trillion, much higher than the 25 in the United States$46 trillion. In other words, with the new ratio, China will overtake the United States to become the world's largest countryEconomyBody. This result was also reported by the Financial Times, which pointed to the problem of exchange rate distortion effects, arguing that the dollar is realPurchasing poweroften overvalued, while the currencies of developing countries, including the renminbi, are realPurchasing poweris underestimated.
According to someEconomyScientists' point of view, if used by countries truePurchasing powerThe conversion factor between China and the United States is re-evaluatedEconomyscale, then China will overtake the United States to become the largest in the worldEconomyBody. Stephen Brooks, a professor at Dartmouth College, agrees that China's nominal GDP is only about 70% of that of the United States at exchange ratesPurchasing powerMeasured at parity, China's GDP will surpass that of the United States. At present, the United States can still maintain the world's first position, mainly because the dollar is a strong currency, and many countries are rushing to buy it, which pushes up the exchange rate. However, if the dollar loses its international status, the United StatesEconomyStatus can take a hit.
icpThe detailed results of the data survey have not yet been published, but according to previous data**, ChinesePurchasing powerThe exchange ratio has an advantage over the United States, which makes China in a new roundicpIn the survey results, it is likely to surpass the United States to become the world's largest countryEconomyBody. This shows that China is inEconomyThe tremendous achievements in development also reflect the success of China's reform and opening-up policy. However, ICP is merely a measurementEconomyScale a method,EconomyThe comprehensive indicator of strength also needs to take into account other factors, such as GDP growth rate, innovation ability, scientific and technological level, etc. Therefore, it remains stable in international competitionEconomyGrowth and the improvement of overall strength are still the direction that China needs to work towards.