Sample Essay on China key economic indicators

China key economic indicators

China is rated second amongst the economic giants of the world. With a population of over 1 billion people and a Gross Domestic Product (GDP) of over $9 trillion, the country is considered one of the most powerful economies in the world. In fact, many economic analysts have their interests piqued over China’s steady economic growth. The following are some of the economic indicators that are used in assessing the Chinese economy.

  • GDP growth. The average growth of China’s GDP has been between 9 and 10%. Between 2012 and 2013, the country’s GDP grew by 9% and earlier in the first quarter of 2014, this figure grew by another 7.5%. This has defied all the predictions of many economists who had stated that China’s GDP would fall. Currently the industrial sector contributes the highest to the GDP while the agricultural sector contributes the least to the country’s economy.
  • Unemployment Rate. China’s unemployment rate currently stands at 4.5% and the average wages per month are $657. Majority of the populace is employed in the agricultural sector (36.7%) and services sector (34.6%). Only 28.7% of the population is employed in the industrial sector. In total, 787.6 million Chinese citizens are employed in all these sectors, making it the highest ranked country in terms of labor force.
  • Trade Balance. China exported products worth $2.21 trillion in 2013. In the same year, the country imported goods worth $1.95 trillion giving it a healthy positive balance of trade. China’s main exports include electrical appliances, apparel and textiles, medical and optical equipment as well as every single category of industrial goods. On the other hand, the country imports oil and mineral products, metal ores, plastics and organic chemicals.
  • Fiscal Situation. China’s inflation rate has risen by 2.5% and this is evident from the consumer price index. This has been viewed as worrisome because the costs of varied basic commodities are higher than last year’s and this can easily affect spending capacities of consumers. The country has a gross external debt of $754 billion and foreign reserves of $3.44 trillion. Many analysts are of the opinion that the amount of credit in circulation in the Chinese economy will be its downfall. This is because most of the credit is in form of assets rather than cash making it difficult for money to circulate in the economy. Additionally, some of the debtors are facing financial problems and this portends huge losses for the financial sector of China.
  • Demographic factors. The population of China currently stands at over 1 billion people. The population living below the poverty line is 6.1% of this and the country has a Gini Coefficient of 0.48. There are concerns that the population of working citizens is dwindling and slowly the growth of aged citizens and children is rising. Last year alone, the working population reduced by over 2 million.
  • Industrial Capacity. The industrial capacity of China has been its saving grace and the economy heavily depends on this sector. However in the recent times, the industrial sector has reduced in contribution towards the GDP and this is viewed as a bad omen for the country.

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