China Becomes World's Largest Economy; Leaves America Behind In Number 2 Spot

China overtook the United States to become the world's largest economy, according to the International Monetary Fund. Data from the IMF, in terms of national economic output in “real” terms of goods and services, China will produce $17.6 trillion in 2014, compared with $17.4 trillion for the US. In other words, China accounts for 16.5 percent of the global economy in terms of real purchasing power; the United States, 16.3 percent. Calculations by the IMF are based on purchasing-power parity, which measures a country's actual economic output rather than exchange rates fluctuations.