Saturday, June 20, 2009

China Economic Growth

About China economic growth Rate of China economic growth has been consistent over last few financial years. In last 25 years, average rate of growth of annual gross domestic product has been more than 10 percent. Rate of growth of per capita income in China had grown at a rate of over 8 percent, in last thirty years. This has helped to bring down levels of poverty in China.
However, there is yet another side to these startling statistics. Even though levels of income have increased in China, inequalities and disparities within Chinese population have gone up. Non governmental sector of Chinese economy Non governmental sector of Chinese economy has grown at a good pace in last few years and Chinese economy has been made accessible to investors from different parts of world. This has increased volume of foreign investment and trading opportunities in China. As far as 2007 fiscal is concerned, China's economic growth has been accentuated by private sector and not by exports. Governmental efforts and Chinese economic growth In recent times, Chinese government has been trying to put stress on foreign trade as a means of accentuating economic growth of China. Between financial years 1949 to 1980, Chinese government brought about new industries that kicked off a long sequence of Chinese economic growth. In initial five year plan from 1953 to 1957, heavy industries were focus of economic development in China. During 1980s, Chinese government followed a series of plans that helped them to achieve an average of 10 percent growth per year. In decade of 1990 to 2000s, growth rate of Chinese economy came down a little. They started taking speculative loans based on an assumption that China was facing hyperinflation. Rates of interest were raised and investment projects were evaluated again. From 1996 fiscal onwards there was a slump that ran for three years as an after effect of ongoing Asian Financial Crisis, even as exports reduced and foreign direct investment came down. A major challenge facing Chinese economy at present is maintaining high levels of growth achieved in recent years. It is important for China to keep its high rate of economic growth going so that it can sustain its job market.

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