REAL GDP GROWTH

Real GDP Growth Of China

Table of Contents

Introduction3

Chinese Economy4

Strengths of Chinese Economy5

Weaknesses of China's economy6

Economic Key terms7

Real GDP7

Unemployment7

Inflation8

Gross Domestic Product8

GDP As the flow rate of expenditure13

GDP as the flow rate of income13

Nominal GDP and Real GDP14

Price Indices15

Analysis16

Reasons for Chinese overestimated GDP20

Conclusion22

References24

Appendices26



Real GDP Growth Of China

Introduction

In recent years China's economic growth has been characterized as high, showing a steady increase in GDP by around 8% of annual average since 1997, with rates that have exceeded 9% since 2003. All this has been driven mainly by industrial expansion and substantial exports. Among the products that China has developed strongly and have driven economic growth and trade are the high technology and global market demand, such as semiconductors, automobiles and personal computers. It has also developed other types of products with a high share in the international market, becoming the first global manufacturer of textiles (including clothing), footwear, consumer electronics (cell phones, DVD players, televisions, etc.), furniture and toys (China's Economy, 2010).

In addition, there have been large productions of coal, copper, aluminum, steel and cement, making this Asian nation in the world's leading producer in those lines. China has a major weight in the global economy and almost decisive for the development of other economies, not only as producer but also as large-scale consumer, accounting for 30% of global consumption of coal, cotton, rice and steel and between 15 and 20% of world copper, soybeans, wheat, aluminum and platinum. It should be noted that one of the external factors that influenced the Japanese economic recovery is the expansionary cycle that is China's economy. Driven by industrial production, export demand and investment, China's economy grew at a strong pace of 9.1% in 2003, the highest rate since 1997. Japanese exporters responded to the challenge by increasing their shipments to China by 33.2%, representing a total of 62 900 million between 2002 and 2003. Nipponese exports to China have more than doubled since 2000, but still represent only half the amount of exports to the United States (Wu, 2009).

Chinese Economy

One of the most attractive and desirable exercise for an economist is, without doubt, study the case of strong growth in China over recent years. The interest is the combination of factors emerging country (strong export growth and income per capita), with other aspects economies only present in very developed (control of inflation and first in the world ranking variable activity variables, consumption and investment). Furthermore, the combination of a political system communist free market economy is a "mixture" that increases uncommon creases the challenge of studying the recent evolution of this country. To get beyond their backwardness and poverty, China had to reconcile the government of Communist Party dictatorship and political centralism with a fantastic operation economic, in short, has not been anything other than the restoration of capitalism mo in services and in certain industrial areas. The Chinese Communists call this "market socialism" (Cohn, 2000).

In the past 25 years, China has staged an impressive GDP growth, becoming a major ...