Monday, May 5, 2014

On a Per Capita Basis, China's Economy is Nowhere Near the Size of America's

There's been a lot of hoopla about the fact that, in absolute terms, China's economy is set to overtake America's as the world's largest this year.  Well, they have 5X the population, so once that is taken into account, things look considerable different, as this graph from a superb post by Mark Perry makes clear (click to enlarge):

That's right: when you compare economies on a per person basis, China's economy has only now reached the point of the American economy in 1912!  So yes, they have made great strides, but as Perry notes, it's also helpful to put the figures in proper context.