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Summary The Age of America will have an end sooner than everybody has thought, IMF said.
IMF (International Monetary Fund) official forecasts announced that the Chinese economy will transcend the American in five years from now. According to the international organisation, the “Age of America” will have an end sooner than everybody has thought. It means, whoever might be elected to be the next president will be the last one to lead Americans under the title of world’s largest economy.This prediction raises lots of questions about the international security system as well as the new role of the dollar and the Treasury in the international market, since both might lose their liabilities and privileged status as world’s most hegemonic power.To come to this forecast, the IMF tried to look at the real picture of both economies, analysing in real terms what is spent and earn in their domestic economies. The respective exchange rates were also compared.The Chinese economy will grow under Purchasing Power Parity from $11.2 trillion (in 2011) to $19 trillion in 2016. At the same time, American Economy will expand from $15.2 trillion to $18.8 trillion – putting America’s share of the world production to the lowest in the last decades: 17.7%, while China will achieve growing 18%.The Chinese rise is astonishing; 10 years ago, the American economy was three times bigger than the one of China.
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