A recent article entitled "" was published in the UK ".Financial Timeshas attracted widespread attention. This article** upExchange ratewithPurchasing power parityWhen calculating the impact of the country's GDP, indicate the currentExchange rateDistorts the reality of the dollarPurchasing power。According toPurchasing power parityAccording to calculations, China's GDP has surpassed that of the United States, and the actual gap has reached 22%. However, the accuracy of this comparison is still controversial.
Exchange rateRefers to the exchange rate between two currencies. Due toExchange rateThe appreciation of the dollar will lead to othersCurrency depreciationVice versa. The article illustrates with the example of Japan and GermanyExchange rateImpact on a country's GDP rankings. Although Japan's GDP growth rate is higher than Germany's, it is due to the depreciation of the yen against the dollar more, according toExchange rateGermany's GDP surpasses that of Japan, and this phenomenon shows traditionExchange rateLimitations of the law.
However, just rely onExchange rateto compareNational economyThe scale may not accurately reflect the actual situation. Therefore, it needs to be usedPurchasing power parityto assist with calculations.
Purchasing power parityis a substitute for traditionExchange ratemethod of calculation, which consists of a list of goods and services required by the country's residents, and calculates the actual currency of each country in the countryPurchasing power, and then convert the GDP of each country into dollars according to the currency value. This method allows for more accurate comparisons between countriesEconomysize and GDP per capita.
InternationalThe Comparative Project (ICP) is:World BankLaunched in 1968 as a project to address traditionExchange rateLaw in comparisonNational economyLimitations at scale. The project calculates the weighted average of 500 goods and services in 151 classes to arrive at the national valuesPurchasing power parityExchange ratio. World BankSurveys are conducted every few years and the latest data are published.
However,Purchasing power parityThere are also some shortcomings in the methodology, such as the difficulty of fully considering the changes in goods and services, and the difficulty of data collection. Therefore, the calculation results of national GDP need to be fully considered.
According toWorld BankPublished data survey results of the ChineseRMBwith the US dollarPurchasing powerThe exchange ratio is 418。Using this as a benchmark, China's GDP is inPurchasing power parityThe next is 199 trillion dollars, more than the United States 1961 trillion dollars. This means China'sEconomyThe scale has surpassed that of the United States.
Putin also mentioned in October 2021, according toPurchasing power parityIn calculation, China has surpassed the United States to become the world's firstEconomyBody. Moreover,World BankAlso projected for 2018 to 2022Purchasing powerExchange ratio, according to these ** data, China's GDP is inPurchasing power parityThe lower average surpassed the United States, surpassing nearly 4$8 trillion.
However, the reliability of the results of this comparison is still controversial. BecauseExchange rateThe volatility of the data is an important factor affecting the data, and the strong position of the US dollar as the world's major currency can be pushed higher by various meansExchange rate, thus maintaining the leading GDP position of the United States. Therefore, whether to use or notPurchasing power paritymethods to compareNational economyscale, which also needs to be studied and discussed in more depth.
It is known that the latest roundInternationalThe data survey for the ICP is ongoing and is expected to be published in 2024RMBEurosBritish poundsand other currencies with the US dollarPurchasing power parityExchange ratio. At that time, we can compare the GDP of China and the United States again.
In reality,EconomyFactors such as growth rate, population size, and scientific and technological innovation are all correctNational economyMake a big impact. Exchange ratewithPurchasing power parityJustEconomyA method of comparison, there is no one method that can be measured with complete accuracyNational economyScale. Therefore, in comparisonNational economyScale, a combination of indicators and methodologies should be used to draw more comprehensive and objective conclusions.
To sum up, in the presentInternationalEconomypattern, ChinaEconomyThe scale has surpassed that of the United States, but whether it has really become the largest in the worldEconomybody, which still needs to be observed and studied. Either wayExchange rateStillPurchasing power parity, all justEconomyComparison tools that cannot be fully revealedNational economyThe actual situation. Therefore, we need continuous attention and researchInternationalEconomydata, and combined with multiple indicators for a comprehensive evaluation to better graspNational economydevelopment.