The Chinese economy will surpass that of the US by 2016, the International Monetary Fund (IMF) has predicted, WSJ informs. According to the IMF’s forecast, based on “purchasing power parities”, China’s gross domestic product (GDP) will rise from USD 11.2 trillion in 2011 to USD 19 trillion in 2016, while the American economy will increase from USD 15.2 trillion to USD 18.8 trillion.
China’s share of the global economy will ascend from 14 percent to 18 percent, while the US’ share will descend to 17.7 percent, China Daily reported. In the mean time, China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday. The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.