China’s Economic Muscle ‘Shrinks’ – BBC News
China’s economy, the world’s second largest, is not as big as was thought, a report by the World Bank has claimed. According to the bank, previous calculations have overestimated the size of China’s economy by about 40%.
The revelation came after the bank updated the way it calculated the country’s gross domestic product (GDP) . The bank said the findings meant China would not become the world’s biggest economy in 2012 as forecast. It also meant China was poorer than estimated. This in turn would influence future aid and investment plans, the World Bank said. [Full Text]
[Image: Despite China’s boom, tweaks are needed to keep it running smoothly, from Getty Image.]