Download - China’s Economic Growth By: Martine Dulcine Katiuska Perez Katiuska Perez Preston Roth Preston Roth
China’s Economic GrowthChina’s Economic Growth
By: Martine DulcineBy: Martine Dulcine
Katiuska PerezKatiuska Perez
Preston RothPreston Roth
China’s Past Economic GrowthChina’s Past Economic Growth
Economic Reform Economic Reform began in the 1970sbegan in the 1970s
Some Reforms Some Reforms included:included:
--Gradual Liberalization of Gradual Liberalization of PricesPrices
-The Opening to Foreign -The Opening to Foreign Trade and Investment Trade and Investment
-Fiscal Decentralization-Fiscal Decentralization
Current Trends in Economic Growth Current Trends in Economic Growth
China has become the China has become the 22ndnd largest economy in largest economy in the worldthe world
GDP Growth in 2005 GDP Growth in 2005 hardly slowedhardly slowed
Consumer Spending Consumer Spending increasedincreased
Although Exports Although Exports decreased in 2005, still decreased in 2005, still remain highremain high
Growth Rates
-5%
0%
5%
10%
15%
20%
Year
%
China
U.S
Present TimePresent Time
Real GDP in 2000 dollars
0.002000.004000.006000.008000.00
10000.0012000.0014000.0016000.00
Year
bil
lio
ns
TOTAL China GDP UNITED STATES
China Still 2China Still 2ndnd to USA in GDP to USA in GDP Small Percentage of U.S. GDPSmall Percentage of U.S. GDP
Effects of China’s Rapid GrowthEffects of China’s Rapid Growth
Shortage of space to Shortage of space to expandexpand
China is the 2China is the 2ndnd highest highest producers of Carbon producers of Carbon DioxideDioxide
Not enough power Not enough power plant to support their plant to support their growthgrowth
Water shortage / water Water shortage / water contamination contamination
What Might Slow Down China’s What Might Slow Down China’s Rapid Growth?Rapid Growth?
Undervalued currencyUndervalued currency Nonperforming bank Nonperforming bank
loansloans Inefficient state-owned Inefficient state-owned
enterprises enterprises Rural-Urban income Rural-Urban income
GapGap
Causes of the Rural-Urban Income Causes of the Rural-Urban Income GapGap
Government programs designed to help Government programs designed to help Urban familiesUrban families
The government buys more than 50% of the The government buys more than 50% of the grain sold by the farm below market pricegrain sold by the farm below market price
Future of Economic Growth in ChinaFuture of Economic Growth in China
Future ProjectionsFuture Projections
Urbanization rateUrbanization rate Small-medium sized Small-medium sized
enterprisesenterprises
Annual Percentage Change in Exports
1
-5
5
13
24
22
35
35
-10 0 10 20 30 40
percentage change US China
2002
2000-04
2003
2004
Forecast of the GDPForecast of the GDP