[Zhang Fei]

[Using the PPP metric, China is the world’s largest economy. A failing Chinese economy will have global repercussions, including on the U.S. China has replaced the U.S. as the engine of the global economy.]

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PPP is a coping mechanism for poor countries. It was used to show us how the decrepit Russian empire under the hammer and sickle was really massive and within striking distance of the US. Then it fell apart and the Russian economy, the most dynamic part of the empire, with half its population, remains at 6% of the US economy 30 years after it adopted a semblance of a market economy. PPP is a shining example of how, when you start throwing in fudge factors, garbage numbers are the inevitable result. The real bottom line is gas stations only take exchange rate, not PPP, dollars.

[kabar]

https://www.cia.gov/the-world-factbook/field/real-gdp-purchasing-power-parity/country-comparison

The CIA Factbook uses PPP.

Real GDP (purchasing power parity)

GDP (purchasing power parity) compares the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation’s GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States.