China’s economy will overtake the U.S. economy in 2016, according to estimates published today by the International Monetary Fund (IMF), informs chinadaily.com.
IMF forecast, which is based on “purchasing power parity”, shows that China’s GDP will increase from 11,200 billion Dollars in 2011 to 19,000 billion Dollars in 2016, while the U.S. economy will increase from 15,200 billion Dollars to 18,800 billion Dollars.
As a result, China’s share in the global economy will go up from 14% to 18%, while the U.S. share will drop to 17.7%.
In December 2010, the publication “The Economist” has estimated that in 2019 China will surpass the U.S. in terms of nominal Gross Domestic Product. Last week, Olivier Blanchard, the chief economist of the International Monetary Fund, said that the U.S. does not have a credible medium-term plan for deficit reduction.
Olivier Blanchard’s statement is based on the decision took by the credit rating agency Standard & Poor’s of lowering to ‘negative’ from ‘stable’ the outlook for the ‘AAA’ rating of the U.S. economy.
“There are reasons for concern. U.S. does not have a credible plan in the medium term to reduce the budget deficit, and if Barack Obama’s speech from April 13 goes on the right track, the concrete decisions will be adopted”, Olivier Blanchard said in an interview to Le Monde – the French daily.
For the IMF’s chief economist, :the debate between the two parties (Republican and Democrat) which ended on April 8 with a savings plan of 39 billion Dollars is insufficient, because the ideological gap between Democrats and Republicans on how to be addressed the deficit problem is enormous”.