China Gdp Analysis

Analysis of Facts and Figures

Definition of GDP

GDP is the total market value of all the final goods and services produced within the country in a particular period of time. GDP excludes intermediate goods and services and also excludes goods and services that are produced out of the country. It is usually calculated on annual basis. It includes all private and public consumptions, government expenditures, investments and exports less imports that occur within a country.

Mathematically,

GDP = C +I + G + (X-M) Where, C = Consumption I = Investment G = Government Spending (X-M) = Total Exports minus Total Imports

It acts as an indicator of the economic health of a country and can also act as means to measure the country’s standard

The growth rate in the year was reported at 7.8%. Although the growth was slow, it showed the signs of a maturing economy and driving the nation from a developing to a developed nation. The China’s GDP (PPP) per capita was USD 12,405.67; this value is 37 times higher than it was 30 years ago. A large state owned enterprises produced over 50% of China’s goods and services, providing employment to over half of nation’s labor force. The achievement of targets in 2012 can be taken from the fact that 65 State Owned Enterprises of China made into 2012 Fortune Global 500 list, which includes country’s power grid and oil company. The most dominating sector of China’s economy viz. Manufacturing and industries witnessed a drop of 3.3% in its composition of the nation’s GDP, but it still accounted 45.3% in nation’s GDP. Thus firming China’s position as world leader in gross value of industrial

It was, in fact, well below what the economists expected and this was attributed to a reduction in the foreign demands for Chinese exports for the first time in many years but the impressive part is that China rebounded back both impressively and quickly. A drop of 2.2% was reported in exports over the previous year. The global economic recession strongly affected the Chinese economy for the first time in three decades. This drop can be attributed to the burnt of financial crisis experienced by the three biggest buyers of Chinese exports – USA, Japan and Europe. The loss of purchasing power in these three regions caused a drop in China’s exports to USD 114.99 billion. One of the worst affected commodity was the export of Chinese coal which fell by 50%, year over