A bit disappointed by the World Bank's methodology
- 2014-05-14
Seems the World Bank's latest figures use "purchasing power parity" i.e. their figures are based on what the Chinese can buy in China and on what the Americans can buy in America. My understanding is that this is wrong because the prices of housing and food in China are way lower than what they are in America. It's like comparing apples and oranges. The right way is to compare the purchasing power of Chinese - not in China - but on the international markets with the purchasing power of America - not in America - but on the international markets. Based on the latter methodology, the economy of America is twice the size of the economy of China.
Add to this the horrible pollution that the Chinese have to live with in 90% of their cities, and you see China lagging far, far behind America.
C'est la merde
- 2014-05-09
A real rubbish what you have written! "Huge business" is no indicator for greatness or brilliance!
C'est la merde
- 2014-05-09
Who cares about gambling revenue? Merde.
lao
- 2014-05-09
Chinese company Alibaba does huge business, and therefore is going to be worth a lot of money. Last year, Alibaba sold $248 billion in goods—everything from frozen fish fillets to Nike sneakers to used jetliners. In one day last year, it saw $5.8 billion in transactions. Alipay was used in payments worth $519 billion. Alibaba is the biggest e-commerce site in the world’s fastest-growing economy, one where many inhabitants aren’t even online yet. Because it functions largely as a marketplace, Alibaba’s operating costs are relatively low, and that, along with its very low taxes, means it enjoys profit margins of 45 percent.
Analyst estimates for the company’s post-IPO value range from $136 billion to $245 billion. If it’s anywhere but at the bottom of that range, that means the company will be more valuable than Facebook (FB).
http://www.businessweek.com/articles/2014-05-06/alibaba-files-for-an-ipo-why-you-should-care#r=read
lao
- 2014-05-09
Macau casino revenue growth accelerated last year as the world’s largest gambling hub, which already takes in about seven times as much as the Las Vegas Strip, widened its lead.
http://www.bloomberg.com/news/2014-01-02/macau-casino-revenue-jumps-19-percent-to-45-2-billion.html
lao
- 2014-05-09
Recognizing China's Clout
Remember how China’s economy was supposed to surpass the U.S.’s sometime in the next decade or so? Turns out it may have already happened. The World Bank’s International Comparison Program takes account of international prices to give a more accurate measure of a nation’s real output. The statisticians have just completed the exercise for 2011, and they found that China’s economy was 87 percent as large as the U.S.’s—not 47 percent, as output converted at market exchange rates would have you believe. Since 2011, China has grown much faster than the U.S. According to the World Bank’s numbers, China’s economy will be the world’s biggest before 2014 is out, if it isn’t already.
China’s Bureau of Statistics is disputing the World Bank report that China will become the world’s biggest economy this year. The bureau says the calculation has constraints and doesn’t reflect the true picture of the Chinese economy.
How big is the Chinese economy? A recent World Bank report says it will overtake the U.S. to be the world’s biggest in 2014, as measured by Purchasing Power Parities, or PPPs.
But to some experts, the calculation is not accurate.
"PPPs compares two countries’ GDPs in term of expenditure. That needs a strong hypothesis, which is that consumers in the countries have same or similar spending preference. But sometimes, it is very difficult to find similar products in different countries. That hardly makes an accurate comparison," Professor Ren Ruoen from Beihang University said.
Full article here: http://english.cntv.cn/2014/05/06/VIDE1399365600960880.shtml
