Recently, the International Monetary Fund released the global purchasing power GDP forecast for 2023. China, the United States, India, Japan and Germany rank among the world's top five.
According to the International Monetary Fund's forecast, Germany's purchasing power GDP will reach $5.55 trillion in 2023, an increase of $0.22 trillion from 2022. This figure is clearly much higher than the exchange rate GDP. Germany once again overtook Russia in purchasing power GDP to become the largest country in Europe. In 2022, Russia's purchasing power and GDP surpassed Germany's, becoming the largest country in Europe. It held out for a year before being overtaken by Germany.
In 2023, Japan's purchasing power GDP will exceed $6 trillion for the first time, reaching $6.46 trillion, which also exceeds Japan's highest exchange rate GDP of $6.12 trillion. Because of the exchange rate, Japan's GDP in dollar terms stagnated for nearly 30 years, even plummeting to $4.23 trillion in 2022. But in terms of purchasing power GDP, Japan has been growing slowly. The purchasing power of per capita GDP is also growing steadily.
India will retain its position as the world's third largest economy by 2023. According to the International Monetary Fund, by 2023, India's purchasing power GDP will reach $13.03 trillion, nearly 50% of that of the United States. If this trend continues, India's GDP purchasing power is expected to equal that of the United States within 20 years.
In 2023, the United States will continue to maintain its status as the second largest country in the world, and the gap with China will continue to widen. According to the International Monetary Fund, the purchasing power GDP of the United States will reach $26.85 trillion in 2023.
Since purchasing power parity takes the purchasing power of $1 as the constant standard, the US purchasing power GDP is the same as the exchange rate GDP, which means that the US GDP will reach $26.85 trillion in 2023. According to this trend, the United States will become the first country in the world with a GDP of more than $30 trillion.
Since 2014, China's purchasing power GDP has surpassed that of the United States, becoming the world's largest country. The gap between the United States and our country is getting bigger and bigger. By 2022, China's purchasing power GDP has exceeded the US $4.87 trillion, and the gap is even wider this year.
According to the International Monetary Fund's forecast, China's purchasing power GDP will reach a staggering $33.01 trillion in 2023, an increase of nearly $3 trillion and $6.16 trillion higher than the United States. Since purchasing power GDP is measured in terms of real purchasing power, there is no exchange rate issue involved. Therefore, there is no superposition of exchange rate fluctuations and it is difficult to catch up.
Oh, and in 2022, Russia's GDP in purchasing power terms overtook Germany for the first time to become the largest in Europe, reaching $5.32 trillion. According to the International Monetary Fund, Russia's GDP will fall to $4.99 trillion this year, ranking sixth in the world. This has a lot to do with falling oil prices. Now Saudi Arabia has announced a cut of 1 million barrels a day. That depends on whether other producers follow suit. If other producers continue to follow suit, leading to a sharp rise in oil prices, then a ranking swap between Germany and Russia is also possible.