Many big changes are being seen in today’s global economy, where China has made its economy the world’s largest economy on the basis of PPP (Purchasing Power Parity), and India is also increasing its share rapidly. If we talk about nominal GDP, then America is still the world’s largest economy, but on PPP basis China has left America behind.

Nominal GDP vs PPP:

When we look at the world’s economies on the basis of nominal GDP, then America is at the top, followed by China and Germany. India is at the fifth position. But when we talk of PPP, which reflects purchasing power, China holds the first position. China has 19.29% share in the global economy, while America’s share is 14.84% and India’s share is 8.49%.

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