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The International Monetary Fund predicts that for the first time in modern history, China will add more to global economic growth than the U.S.

Half of all global economic growth has been attributed to India, Russia and China already this year.

The one unknown factor, which the biannual report didn't take into account, was the credit crunch and the possible effects it can have on the world economy next year, and especially the U.S.

The major concern is if the credit crunch goes on for longer than several months. If it does, debt outside the U.S. housing market could come into play. Other credit markets in the U.S., the U.K. and a number of commercial credit markets were unexpectedly weakened by the sub-prime mortgage problems.

The chief economist for the IMF, Simon Johnson said, "The principal risk going forward is that prolonged disruptions in financial markets and a possible weakening of asset prices and confidence could have a more severe impact on economic activity than anticipated in our baseline projections."

Along with the U.S., western European economies are also projected to have major slowdowns. Much of the overall developed world is facing major growth declines.

IF this happens, China especially will be increasingly important to the global economy. While the U.S. is only expected to grow at a 1.9 percent rate next year, China is looking at a projected 10 percent growth rate.

China is now the fourth largest economy in the world, surpassing the UK not too long ago.