The overall size of the Chinese economy has now surpassed the United States based on purchasing power parity, according to an International Monetary Fund report released Wednesday.

The IMF’s Global Financial Stability report report found that after adjusting for currency rates, the Chinese economy is now $17.6 trillion, compared to the the United States’ $17.4 trillion economy. One part of the report included purchasing power parity, which is a way to equalize the purchasing power of different currencies by eliminating the differences in price levels between countries.

CCTV America’s Zou Yun interviewed Christine Lagarde, managing director of the IMF, what extent purchasing power parity reflects realities in each country.

“It’s one indicator amongst many others. If you look at GDP per capita, China is way behind of course. But you have to take all the factors into account, to actually access the stability and future of economy. I wouldn’t neglect demography by the way. So it’s a sign that by that particular criteria, China is growing.”

One More Question for Christine Lagarde: Has China's economy really surpassed the US?

CCTV America’s Zou Yun interviewed Christine Lagarde, managing director of the IMF, what extent purchasing power parity reflects realities in each country.