Chinese Economics Thread

[Michael90]

GDP by PPP is not perfect but it is far better than nominal where it states the US is the larger economy when China consumes at least twice as much across a variety of major goods and energy!

The keys are China's consumption numbers proving it is larger than the US.

As for India, the numbers are definitely skewed. Their consumption figures on cars and electricity are 1/7th and 1/6th of that of China. So from the consumption standpoint the India's economy is around 5 or 6 times smaller.

That said, electricity usage is third after China and the US. All economic activity results from energy usage:
View attachment 143182

That obviously means that PPP is not a good metrics either then. Its even worse then nominal. Lol

 

[GiantPanda]

That obviously means that PPP is not a good metrics either then. Its even worse then nominal. Lol

The best metrics might be simple consumption of a basket of goods and energy. That would show straight forward spending power.

But PPP is much better than nominal, maybe with the exception of India. Like everything else, it is reliant on the data being used.

Nominal completely messes up the top three. It's obvious that China is larger than the US and India through energy expenditure is larger than Japan. Do we really think Japan has an economy that is bigger than a nation that has 12 times its population?