Albeit the International Monetary Fund's (IMF) previous forecast of China leading in the global economy, a separate study shows that the United States still remains at a higher spot.

The IMF projections recorded a US$17.6 trillion growth for China's GDP against the United States' US$17.4 trillion for this year, but experts say that such conclusions are conservative.

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According to David Hensley, director of global economic coordination at JPMorgan Chase & Co, IMF's figures are only based on China's purchasing power parity (PPP). He added that PPP is dependent on monetary exchange rates, which are constantly changing in different countries; thus, cannot be the sole basis of measuring economic stability.

The United States sits as one of the largest to date, Hensley continues, which is backed up by widely accepted statistical measures. Using PPP exaggerates how far the money goes for a particular country without taking into consideration its contribution in overall international trade.

Based on World Bank's statistics, U.S. outranked China in 2013 by $16.8 trillion against $9.24 trillion GDPs respectively. This is during the height of inflation where the Chinese market took a sharp curve of adjustment.

Hensley followed up that comparing advanced economies to emerging markets - where China belonged in the 2000s - seems somewhat inappropriate. While the U.S. has been continuously recovering since the 2007 financial crisis, China bears the bulk of work to do to catch up with the American success.

Amidst the false alarm, Bloomberg reported United States ranks 10^th in the PPP category alone while China zoomed in to the 86^th spot, a 29-point growth for the last decade. Qatar, Luxembourg, and Singapore are the top three nations economy-wise, says IMF data.

Tagschina's economy, International Monetary Fund, China vs United States economy, international relations, International Economics