Economics

China objects largest economy in the world status

22 january 2015 | 15:15

China refuses to recognize itself as a developed state, arguing that IMF overestimated its GDP growth but underestimated the prices' levels.

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While China's economy is now the largest in the world, its people are far from being rich
The International Monetary Fund (IMF) made a mistake by naming China, not the United States, as the largest economy in the world in 2014, announced the head of the State Statistical Bureau of China Ma Jiantang.

According to the IMF's data, the size of the Chinese economy in 2014, based on purchasing power parity, was $ 17.6 trillion, while in the US's figure was $ 17.4 trillion. Thus, China became the largest economy in 2014.

Read more: US economy grows by decade record 5%

According to the Chinese official, the IMF's analysts underestimated the level of prices in China and overestimated its GDP.

The China's economy is growing, but its per capita rate remains low, says Ma Jiantang, noting that China is a country with a developing economy, where 200 million people live below the poverty line.

According to the Financial Times, China's economy may now be considered the largest in the world, but the country is not the richest. GDP per capita is still less than in the US and makes only a quarter of the US GDP per capita level.

China's reluctance to recognize itself as a developed country is cause by a fact that the so-called status of a "country which is developing" carries certain benefits from a number of international institutions, say analysts.

Read more: China pledges to help rebuilding Russian economy

Earlier, the US said that it plans to expand access to China's domestic market. In particular, US companies plan to increase their exports to China.

Source: Interfax-Ukraine

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