China is About to Overtake the US to Become World’s Largest Economy.

Figures published by the IMF show that China is set to overtake the US to become the world’s largest economy. Purchasing power parity or PPP of China will climb to $17.632 trillion this year, compared with $17.416 trillion for the US. But analysis by IHS points out that China is not expected to rise above the US until 2024 in terms of nominal GDP.

Source: Telegraph, October 9, 2014 If PPP of China becomes greater than that of the U.S. but the GDP of the U.S. remains higher, does this comparison of PPP really tell us which country has the higher standard of living?

What does the news clip mean by ‘nominal GDP’?