China overtakes US as the world's largest Economy

With $17.6 trillion worth, the Chinese economy is now the world's largest as US falls into second place for the first time since 1872. 

According to figures from the International Monetary Fund (IMF), China has toppled America to become the biggest economy in the world.

The US has been the global leader since it overtook Britain in 1872. The new IMF figures show the Chinese economy is worth $17.6trillion compared with $17.4trillion for the US.

The numbers are based on 'purchasing power parity' (PPP) which makes adjustments for the fact that goods are cheaper in countries such as China relative to the US.

Without these adjustments for living costs, the Chinese economy is still smaller than that of the US, the Mail online reported.

But experts have described the toppling of America by China - even on the PPP measure - as a 'symbolic' moment for the global economy.

China enjoyed three decades of double-digit growth before the global downturn, as industrialisation and economic reforms created a new powerhouse in the East.

The IMF forecasts the Chinese economy to grow by 7.4 per cent this year and 7.1 per cent in 2015.