February 15, 2011
The central date for China\'s GDP to overtake the US at market exchange rates is 2019 - a study of growth assumptions and analyses
Summary
The question of when China’s GDP will overtake the US, to become the world’s largest national economy, is self-evidently significant.1 It has become much discussed among Western economic commentators (Rachman, 2011).
When Goldman Sachs first suggested that China’s GDP would exceed that of the US by 2041 this caused surprise (Wilson & Purushothaman, 2003). When Goldman Sachs revised this forward to 2027 this caused greater shock (O\'Neill, 2009). But it has since become evident that, on current trends, Goldman Sachs forecasts projected too long a period for China’s GDP to overtake the US – and did so before the international financial crisis.
In the last two years, work carried out by the present author in the Research Group China in the International Financial Crisis, at Antai College, Shanghai Jiao University, arrived at an estimate of the most central date for China’s GDP, at market exchange rates, to exceed the US as being 2019 – there is inevitably a degree of variance on either side in such projections.
Interestingly, as noted below, other recent analyses now arrive at essentially the same date range regarding parity purchasing power (PPP) estimates. A remaining weakness in a number of these latter studies, however, is that they have in the past underestimated China’s growth and still project too long a time scale for China’s GDP to equal the US at market exchange rates. The reasons for this are considered in detail below.
Perhaps surprisingly, it turns out that projections on this issue are not highly sensitive to the ranges of precise growth rates utilised - provided that these are within realistic historical bounds. The central conclusion is that, unless there is a qualitative change in the economic situation, China’s GDP at market prices is likely to exceed the US in the period 2017-2021. It is also significant that the rate of growth of US current dollar GDP is decreasing while the rate of growth of China’s dollar GDP is accelerating – purely linear projections therefore tend to overestimate the period of time before which China’s GDP equals that of the US.
全文見:http://ablog.typepad.com/key_trends_in_the_world_e/2011/02/the-central-date-for-chinas-gdp-to-overtake-the-us-at-market-exchange-rates-is-2019-a-study-of-growth-assumptions-and-anal.html