A recent study of the International Monetary Fund (IMF) showed that China has taken over the United States as the world's largest economy.

The IMF's report cited that the U.S. economy in 2014 was $17.4-trillion, while China was $17.6-trillion.

The IMF gauged the economy through the Purchasing Power Parity which showed that Chinese consumers are capable to buy more cars, Starbucks coffee and shoes than Americans. The high purchasing power of the Chinese is a manifestation of the growing richness in China, making it a super power country.

Like Us on Facebook

The economic boom of China is reportedly brought by its growing middle class. China's middle class population is now pegged at a massive 100-million.

According to Paul Woo, a Distinguished East Asia Fellow of the Asia Pacific Foundation of Canada, "one hundred million trips were taken by Chinese people outside the country last year." He added there is a growing number of Chinese companies that are now penetrating the Western market.

"Olive oil from Italy or Weetabix cereal from Britain, or your favorate Swedish automobile Volvo, are all now owned by Chinese companies," Woo said.

Also, fine wines in Hong Kong are being purchased mostly by individuals from mainland China.

Woo cited on the investments made by China for renewable energy power. He said that China is investing more than the U.S. in this kind of endeavour.

China is also now the world's biggest producer of cars as well as the largest buyer of cars.

Despite the vibrant economy, however, Woo said that there are still many Chinese whose incomes are still lower than that of the average salary of an American.

Accordingly, there are still many Chinese people who live in poverty line. Most of these Chinese have houses that are still situated in rural areas.

TagsInternational Monetary Fund, World's Largest Economy