China is expected to surpass America this year and become the world’s largest economy, according to the IMF.
The forecast was based on calculations which consider the cost of living and ‘purchasing power parity’.
China is expected to make up $17.632 trillion (£10.9 trillion), or 16.48% of global purchasing power this year, compared with $17.416 trillion, or 16.28% for the US.
The measure takes into account China’s lower wages while calculating the purchasing powers of each country.
China was expected to overtake the US, but not until 2019.
In GDP terms, however, China is not expected to surpass the US until 2024, another ten years from now.
In its latest World Economic outlook, the IMF forecast that China’s growth but said its leaders had to drive more structural reforms.
The IMF expressed concern over China's property market, as leaders will have to find ways to let prices come down while avoiding a crash.
"The challenge is to allow for the necessary correction in real estate markets while preventing an excessively sharp slowdown," it said.
