Economy of China - Introduction The objective of this report is to identify and discuss the performance of the economy of the chosen country Peoples

Economy of China - Introduction The objective of this...

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Introduction The objective of this report is to identify and discuss the performance of the economy of the chosen country, People’s Republic of China, which currently holds the position of the world’s second largest economy as per nominal GDP. ( GDP ranking | Data, 2016) China is an international capital for manufacturing, which leads to manufacturing being one of the key contributors to China’s GDP (Gross Domestic Product). Another top contributor to the country’s GDP is from services, such as farms and factories. China is also the top trading country on the globe, and after joining the World Trade Organization (WTO) in 2001, ( WTO | China, 2016) has been more actively involved in free trade agreements and treaties with many other countries around the world. China has also been slammed by other countries for their dishonest practices in trading, for example; favoritism towards locals and artificial currency devaluation. However, today China is one of the largest manufacturing economy and largest exporter of goods in the world, and continues to expand their economy and increase their nominal GDP each year. Production from Output Performance Analysis i. Real Gross Domestic Product (Real GDP) 1
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Real Gross Domestic Product (Real GDP), also known as Current Prices, refers to the total value of all goods and services at constant prices in a given period of time. This economic indicator calculates price changes such as inflation and deflation, which in turn measures the economic yield per given year. In the graph displayed above, the Real GDP growth of China ranging over the years 2006-2016 is shown. Clearly, it can be seen that China’s Real GDP hit its peak around the last quarter of the year 2015, at a record all-time high total output of 676708, which could possibly be due to many factors such as the rapid growth of the market sales in China, rapid increment of consumer prices which was most likely due to the increase in citizens’ income that year; and the total harvest of crops and produce also went up as compared to 2014 (stats.gov.cn, 2016) . The increase in output could be due to advanced technology, which can be used to improve the quality of the crops and even increase the amount harvested. According to the graph, it can be observed that China’s Real GDP has been increasing and decreasing every year, which shows how unstable the country’s economy and stock market is, as it could be due to China’s government, whom has made very poor decisions over the 10 years. For example, in 2015, the Chinese economy accumulated a debt of $25 trillion, all because of the real estate bubble that was created by the Chinese government after they built a large number of cities meant to house millions but in the end only are occupied by thousands, creating many “ghost cities”.
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