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China GDP Growth Rate
China Gross Domestic Product (GDP) expanded 10.70% over the last 4 quarters. The China Gross Domestic Product is worth 4326 billion dollars or 6.98% of the world economy, according to the World Bank. China's economy is the second largest in the world after that of the United States. During the past 30 years China's economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented that has a rapidly growing private sector. A major component supporting China's rapid economic growth has been exports growth. This page includes: China GDP Growth Rate chart, historical data, forecast and news.
| Year | Mar | Jun | Sep | Dec | Average |
| 2009 | 6.20 | 7.90 | 9.10 | 10.70 | 8.48 |
| 2008 | 10.60 | 10.10 | 9.00 | 6.80 | 9.13 |
| 2007 | 13.00 | 12.60 | 11.50 | 11.20 | 12.08 |
| 2006 | 11.40 | 11.50 | 10.60 | 10.40 | 10.98 |
China's Economy May Overheat in 2010
Published:
1/26/2010 5:15:20 PM
By:
Anna Fedec, contact@tradingeconomics.com
China's economy "weathered" the global downturn better than most economies. In fact, the country’s Gross Domestic Product expanded by an average 8.45% in 2009, the fastest in the world. Yet, the astonishing recovery was supported by a vast fiscal stimulus and loose monetary policy. And looking ahead, China’s economy may overheat and bring inflation to elevated levels thus hampering future growth.
Indeed, China’s growth in 2009 was largely a result of 4 trillion yuan stimulus package directed mostly to infrastructure projects and lending. For example, in December only, China's wide M2 measure of money supply and fixed asset investments grew almost 30% year on year. On the other hand, although putting a lot of cash into an economy during a slowdown may stop job losses, boost confidence and stimulate growth, can also create excess capacity and boost imperfection across the financial system.
In addition, China has been keeping the value of its currency yuan pegged to the US dollar at very low levels. And with greenback having depreciated significantly in 2009, the trade-weighted value of Yuan also declined, making foreign goods more costly in China. Adding to that already high food prices, a result of severe weather conditions in northern regions, and inflation may get out of control. So, under these circumstances there is a big pressure on wage growth and companies are likely to raise prices to cover costs which will depress spending among Chinese consumers.
China Economic News
China's Economy May Overheat in 2010
Published: 1/26/2010 5:15:20 PM
By: Anna Fedec, contact@tradingeconomics.com
China's economy "weathered" the global downturn better than most economies. In fact, the country’s Gross Domestic Product expanded by an average 8.45% in 2009, the fastest in the world. Yet, the astonishing recovery was supported by a vast fiscal stimulus and loose monetary policy. And looking ahead, China’s economy may overheat and bring inflation to elevated levels thus hampering future growth.
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China Inflation Picks Up In December
Published: 1/20/2010 11:50:10 PM
By: TradingEconomics.com, RTTNews
Consumer prices in China climbed 1.9% year-on-year in December, accelerating from the 0.6% rise in the previous month.
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China GDP Grows 10.7%
Published: 1/20/2010 11:44:37 PM
By: TradingEconomics.com, Bloomberg
China’s growth rate accelerated to the fastest pace since 2007 in the fourth quarter, signaling a need to rein in credit growth that threatens to destabilize the world’s fastest-growing major economy.
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Chinese Exports Rebound Strongly
Published: 1/11/2010 9:57:01 AM
By: TradingEconomics.com, MarketWatch
Chinese exports expanded for the first time in over a year, while the country's imports bill rocketed on higher demand for crude oil and other commodities in December, strengthening the case for policy tightening and resumption of a yuan appreciation, analysts said.
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China Central Bank Surprises with Yield Hike
Published: 1/7/2010 10:49:29 AM
By: TradingEconomics.com, Reuters
China's central bank surprised markets on Thursday by raising the interest rate on its three-month bills for the first time since August, intensifying its grip on liquidity a day after it promised to keep credit growth in check.
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China Starts Slowly in 2010 Race Against Inflation
Published: 1/5/2010 5:32:01 PM
By: Reuters
China's central planners won last year's race, rushing to shore up growth before collapsing exports dragged down the economy. They have adopted less urgency in their approach to this year's race: taming inflation before it takes off on the back of super-charged growth.
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China Export Slump Eases
Published: 12/11/2009 10:38:34 AM
By: TradingEconomics.com, AP
China's exports fell 1.2 percent from a year earlier in November, the smallest decline this year as nascent recoveries in the U.S. and other big markets helped revive demand.
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Growth Imbalances May Overheat Chinese Economy
Published: 11/20/2009 6:55:20 PM
By: Anna Fedec, contact@tradingeconomics.com
China is leading the global economy into recovery with 8% growth target for 2009. However, the third largest economy in the world may overheat before it reaches a sustainable growth. Indeed, Chinese officials are not thinking in the long-term and a fixed exchange combined with a poor management of China’s monetary policy will damage domestic consumption and possible trigger a global slowdown.
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China Trade Surplus Swells
Published: 11/11/2009 9:53:32 AM
By: TradingEconomics.com, Bloomberg
China’s trade surplus swelled in October to the highest level this year as exports fell at a slower pace, bolstering the case for policy makers to let the yuan appreciate.
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China’s Industrial Output, Retail Sales Accelerate
Published: 11/10/2009 10:31:16 PM
By: TradingEconomics.com, Bloomberg
China’s industrial production and retail sales accelerated in October, bolstering forecasts for economic growth to exceed 10 percent this quarter for the first time in more than a year.
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More news
GDP Growth Definition
Economic growth is the increase in value of the goods and services produced by an
economy. It is conventionally measured as the percent rate of increase in real gross
domestic product, or GDP. Growth is usually calculated in real terms, i.e. inflation-adjusted
terms, in order to net out the effect of inflation on the price of the goods and
services produced. In economics, "economic growth" or "economic growth theory" typically
refers to growth of potential output, i.e., production at "full employment," which
is caused by growth in aggregate demand or observed output.As economic growth is
measured as the annual percent change of National Income it has all the advantages
and drawbacks of that level variable. But people tend to attach a particular value
to the annual percentage change, perhaps since it tells them what happens to their
pay check.
The real GDP per capita of an economy is often used as an indicator of the average
standard of living of individuals in that country, and economic growth is therefore
often seen as indicating an increase in the average standard of living.However,
there are some problems in using growth in GDP per capita to measure general well
being.GDP per capita does not provide any information relevant to the distribution
of income in a country. GDP per capita does not take into account negative externalities
from pollution consequent to economic growth. Thus, the amount of growth may be
overstated once we take pollution into account. GDP per capita does not take into
account positive externalities that may result from services such as education and
health. GDP per capita excludes the value of all the activities that take place
outside of the market place (such as cost-free leisure activities like hiking).
Economists are well aware of these deficiencies in GDP, thus, it should always be
viewed merely as an indicator and not an absolute scale. Economists have developed
mathematical tools to measure inequality, such as the Gini Coefficient. There are
also alternate ways of measurement that consider the negative externalities that
may result from pollution and resource depletion (see Green Gross Domestic Product.)The
flaws of GDP may be important when studying public policy, however, for the purposes
of economic growth in the long run it tends to be a very good indicator. There is
no other indicator in economics which is as universal or as widely accepted as the
GDP.Economic growth is exponential, where the exponent is determined by the PPP
annual GDP growth rate. Thus, the differences in the annual growth from country
A to country B will multiply up over the years. For example, a growth rate of 5%
seems similar to 3%, but over two decades, the first economy would have grown by
165%, the second only by 80% (source: wikipedia).
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