Economic Power Shifts
Economic Power Shifts East
Introduction
GDP of a country and GDP growth rate are two important metric based on which economic prowess of a country can be measured. While east is behind west in terms of gross GDP numbers, reverse is true for GDP growth rate. The center of economic power has shifted from the West to the East. World is witnessing a change in economic structure and is going through a transition .Following data shows 12 fastest growing economies.
Country GDP Growth 2012 GDP Forecast
Niger 15.40% $7.38 billion
Iraq 10.57% $128.094 billion
Liberia 10.50% $1.32 billion
Angola 10.50% $1.32 billion
China 9.52% $7,209.42 billion
Haiti 8.80% $9.21 billion
Timor Leste 8.63% $0.807 billion
Ethiopia 8.02% $32.3 billion
India 7.82% $1,858.9 billion
Mozambique 7.80% $12.9 billion
Afghanistan 7.47% $19.1 billion
Zambia 7.38% $21.8 billion
Source: Economy Watch
Above table shows countries having highest GDP growth rate. Many of these countries are showing exceptional growth rate because of the base effect, but this reflects that politico- economic conditions in these countries are now favorable to growth and will attract investments.
From the above data , it is quite apparent that China and India are amongst the two largest emerging economic powers of world. Which country will occupy the leadership position in coming decades will also redefine - two very different political ideology. While, India is a vibrant democracy China is a one party system. China’s success is rooted in a social scientific concept of state capitalism which has helped it to grow at an amazing pace while India’s diversity and complex political system has led it to grow but at a slower pace than China. Growth Stories Of China & India
Like India, Chinese growth story also started with economic reforms and liberalization. In spite of being a communist while India being a mixed economy China liberalized its economy almost 13 years before India and opened its doors to the
Introduction
GDP of a country and GDP growth rate are two important metric based on which economic prowess of a country can be measured. While east is behind west in terms of gross GDP numbers, reverse is true for GDP growth rate. The center of economic power has shifted from the West to the East. World is witnessing a change in economic structure and is going through a transition .Following data shows 12 fastest growing economies.
Country GDP Growth 2012 GDP Forecast
Niger 15.40% $7.38 billion
Iraq 10.57% $128.094 billion
Liberia 10.50% $1.32 billion
Angola 10.50% $1.32 billion
China 9.52% $7,209.42 billion
Haiti 8.80% $9.21 billion
Timor Leste 8.63% $0.807 billion
Ethiopia 8.02% $32.3 billion
India 7.82% $1,858.9 billion
Mozambique 7.80% $12.9 billion
Afghanistan 7.47% $19.1 billion
Zambia 7.38% $21.8 billion
Source: Economy Watch
Above table shows countries having highest GDP growth rate. Many of these countries are showing exceptional growth rate because of the base effect, but this reflects that politico- economic conditions in these countries are now favorable to growth and will attract investments.
From the above data , it is quite apparent that China and India are amongst the two largest emerging economic powers of world. Which country will occupy the leadership position in coming decades will also redefine - two very different political ideology. While, India is a vibrant democracy China is a one party system. China’s success is rooted in a social scientific concept of state capitalism which has helped it to grow at an amazing pace while India’s diversity and complex political system has led it to grow but at a slower pace than China. Growth Stories Of China & India
Like India, Chinese growth story also started with economic reforms and liberalization. In spite of being a communist while India being a mixed economy China liberalized its economy almost 13 years before India and opened its doors to the
References: Economy watch: http://www.economywatch.com/economy-and-business-slideshow/12-fastest-growing-economies-of-2011.17-06.html?slide=9 http://www.business-standard.com/india/news/dinnerbs-nitish-kumar/472342/ http://www.economist.com http://www.weeklypulse.org http://business.time.com