The paper "Economic Growth of China" is a wonderful example of a report on macro and microeconomics. The growth of China’ s economy dates back in the year 1978. This was the era when reforms started taking place. The reforms were known-gauge Kaifeng’ which meant reforming and opening up and they took place in the year 1978 under the rule of Deng Xiaoping. With the introduction of these reforms, there was rapid economic growth in China and it expanded its private sector and there was tremendous increase in foreign investment in the country (Chow, 2010). Chow (2010) adds that the Chinese economy is regarded as the second largest in the world and the fastest growing in the world.
Her annual average growth is estimated to stand at 10%. The GDP stood at $ 8394 a report by the IMF with industries taking the major role. It is believed that one of the major causes of China’ s economic growth is that most of the private sectors were allowed to operate freely. However, as a result of foreign investment, there was a need to upgrade the infrastructure and construction of industries in China.
All these led to creation of employment hence there was an increase in income for the citizens of China resulting in improved economic growth. Consequently, this led to the transfer of technology amongst the Chinese as well as the exportation of manufactured products thus rose of export to 19% from the early 1980s to the early 2000s (Riedel, Jin and Gao, 2007). During these reforms, China mostly embarked to liberate its economical reforms. These reforms enabled the economy of China to have a huge GDP growth rate up to the present day.
The Gross Domestic Product stands at 9.4% which translates to $24.6 trillion. Today China shares 25% global growth which is higher than that of the USA which stands at 20 (Chow, 2010) Table 1, China’ s average annual real GDP growth rate (2007-2012) Time period The average annual growth rate 2007 14.2 2008 9.2 2009 9.6 2010 10.4 2011 9.2 Moreover, because of trade with its patterns, the Chinese economy has grown throughout the years since reform (1979-2006). To this extent, the GDP has grown compared to other countries with its trading members. In China, as compared to other countries as the USA and Japan the prices of goods and services are extremely low and this has an impact on economic growth (Chow, 2010).
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