Analysis of Macroeconomic Indicators of China
Analysis of Macroeconomic Indicators Of China
Analysis:
Macroeconomic Indicators along with values is provided in the below table Macro Economic Indicators | Value | GDP Growth Rate | 9.1% | IIP Growth Rate | 14% | Agricultural Growth Rate | 4.3% | Fiscal Deficit | 800 billion yuan | Interest Rates | 6.56% | Exports | 180.2 billion USD | Imports | 148.5 billion USD | Current Account Deficit | 59.8 billion USD | Inflation | 7.65% | Foreign Exchange Reserves | 3.24 trillion USD |
GDP Growth Rate: * GDP (purchasing power parity) of china is $11.3 trillion second largest in the world. * Most of the GDP is comprised of the exports. China is an export based economy. * GDP of China rose rapidly over past 33 years, Chinese households do not appear to have shared equally in that growth. * The Growth rate of GDP is averaged at 10% from past 5 years. Even during recession periods china GDP continuously grew at an average rate of 9%. There is a serious concern in the distribution of china’s GDP in which household expenditure and private consumption is low. * Falling share of private consumption and disposable income relative to GDP is largely caused by two main factors: China’s banking policies and the lack of an adequate social safety net. Chinese households put a large share of their savings in domestic banks. * The Chinese government sets the interest rate on deposits. Often this rate is below the rate of inflation, which lowers household income. Social safety nets such as pensions, healthcare benefits are low in China because of which savings are more in that country, which results in poor spending. * Proper measures in increasing the household expenditure will make china as more independent.
IIP Growth Rate: * Industrial production measures changes in output for the industrial sector of the economy which includes manufacturing, mining, and utilities. Industrial Production is an important indicator for economic forecasting and is often
Analysis:
Macroeconomic Indicators along with values is provided in the below table Macro Economic Indicators | Value | GDP Growth Rate | 9.1% | IIP Growth Rate | 14% | Agricultural Growth Rate | 4.3% | Fiscal Deficit | 800 billion yuan | Interest Rates | 6.56% | Exports | 180.2 billion USD | Imports | 148.5 billion USD | Current Account Deficit | 59.8 billion USD | Inflation | 7.65% | Foreign Exchange Reserves | 3.24 trillion USD |
GDP Growth Rate: * GDP (purchasing power parity) of china is $11.3 trillion second largest in the world. * Most of the GDP is comprised of the exports. China is an export based economy. * GDP of China rose rapidly over past 33 years, Chinese households do not appear to have shared equally in that growth. * The Growth rate of GDP is averaged at 10% from past 5 years. Even during recession periods china GDP continuously grew at an average rate of 9%. There is a serious concern in the distribution of china’s GDP in which household expenditure and private consumption is low. * Falling share of private consumption and disposable income relative to GDP is largely caused by two main factors: China’s banking policies and the lack of an adequate social safety net. Chinese households put a large share of their savings in domestic banks. * The Chinese government sets the interest rate on deposits. Often this rate is below the rate of inflation, which lowers household income. Social safety nets such as pensions, healthcare benefits are low in China because of which savings are more in that country, which results in poor spending. * Proper measures in increasing the household expenditure will make china as more independent.
IIP Growth Rate: * Industrial production measures changes in output for the industrial sector of the economy which includes manufacturing, mining, and utilities. Industrial Production is an important indicator for economic forecasting and is often