It is well known that GDP calculated using purchasing power parity is very different from GDP calculated using exchange rates. The premise of using exchange rates to calculate GDP is that a country's production must have access to international markets. Otherwise, if I was only in domestic sales, I wouldn't need this course at all. In fact, most of what any country produces is consumed domestically, with a larger share in services, so PPP is a better reflection of the country's physical GDP.
In terms of exchange rates, China's GDP will be $17.73 trillion in 2021 and $18 trillion in 2022, an increase of only $270 billion. In fact, China's GDP grew by 6.65 trillion yuan, and the real GDP grew even more. .
In purchasing power parity terms, the five countries with the highest GDP growth rates in the world are China, the United States, India, Russia and Germany.
Germany ranked fifth in global growth. In 2021, the purchasing power of German GDP will be $4.85 trillion, more than the exchange rate of GDP. It can be seen that Germany's level of production and technological development is indeed inferior to that of the United States. Otherwise, the volume should remain the same or be reduced.
By 2022, the purchasing power of German GDP will increase to $5.31 trillion, an increase of $460 billion. This is the real situation in Germany. Germany's real GDP growth would not be reduced by $150 billion because of the exchange rate, but how would it be reflected?
Russia ranks fourth in global growth. The purchasing power of Russia's GDP in 2021 will be $4.81 trillion, more than twice the GDP exchange rate. This shows that Russia's level of productivity development is far from that of the United States. But it also partly explains why Russia has held its ground after so many years of being bullied by NATO. In terms of exchange rate and GDP, Russia will be worse than South Korea by 2022. How to resist NATO's oppression?
By 2022, the purchasing power of Russia's GDP will increase to $5.33 trillion, overtaking Germany to become the world's fifth largest economy. The $520 billion increase was driven by a global energy surge caused by the conflict between Russia and Ukraine.
The third largest increase in the world was in India. No matter how fast India grows, its population is there and now it has become the most populous country in the world. We also support industrialization. With 780 million people working in industrial services, the increase will not be small. The purchasing power of India's GDP in 2021 will be $10.19 trillion, about three times the size of India's GDP. It is the only country other than China and the United States with a GDP of more than $10 trillion.
By 2022, the purchasing power of India's GDP will rise to $11.87 trillion, an increase of $1.68 trillion. As you can see, India's growth rate is still very high.
The second largest global increase was naturally in the US. Since PPP takes the purchasing power of US $1 as a constant unit, the purchasing power of GDP and the exchange rate of US GDP are the same. The purchasing power of US GDP in 2021 will be $23.02 trillion and $25.46 trillion in 2022, an increase of $2.44 trillion.
In terms of gradual growth, our country, China, is unquestionably the world leader. In 2014, the purchasing power of China's GDP surpassed that of the United States, and the gap has widened ever since. In 2021, the purchasing power of China's GDP will be 27.31 trillion US dollars, 118.64% of the purchasing power of the United States.
In 2022, China's GDP will reach 3.033 trillion US dollars, an increase of 3.02 trillion US dollars over 2021. In 2022, China's GDP will be 119.13% of the US GDP. Since PPP does not include exchange rates, it will not be affected by currency depreciation this year. China's economic growth rate is much higher than that of the United States, so the PPP gap will continue to widen.