America's economic dominance on the world stage could end in five years, according to a new report.
The International Monetary Fund's latest forecast predicts that China's economy will outflank the United States' in 2016.
The date has been set for when the Chinese economy will officially overtake that of the United States — and it’s only five years away! The International Monetary Fund forecasts that the so-called “Age of America” will end in 2016, The Wall Street Journal reports.
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“Most people aren’t prepared for this. They aren’t even aware it’s that close. Listen to experts of various stripes, and they will tell you this moment is decades away. The most bearish will put the figure in the mid-2020s,” says the Journal.
The reason for the discrepancy is all in exchange rates, says the Journal. Because the Chinese Yuan is held artificially low, most figures are misleading.
Under the more realistic figure, Chinese purchasing power will rise from $11.2 trillion this year to $19 trillion in 2016, says the IMF forecast. During the same time, U.S. purchasing power will rise only from $15.2 trillion to $18.8 trillion.
“That would take America’s share of the world output down to 17.7 percent, the lowest in modern times. China’s would reach 18 percent, and rising,” according to the Journal.