http://money.cnn.com/2012/04/23/news/economy/china-economy/index.htm?iid=Lead
China has become an economic powerhouse in the past few decades, yet the country is now experiencing problems associated with their rapid growth. Despite being the second largest economy in the world, China still lags behind many developing countries.
China's GDP per capita still ranks 91 in the world, at around $9, 143. Countries like Iran and Botswana are actually richer per person. China is experiencing a huge demographic shift from the rural areas to the city, which has lifting many out of poverty. However, there is still a huge problem of inequality between the rural and urban areas. It is to say that the wealth in China is not being evenly distributed among its 1.4 billion citizens. 200 million people in China live on less than $2 a day.
The growth in GDP is expected to slow this year, and it could take until 2018 or 2019 for the country to see a level of GDP that is considered to be a rough minimum for a developed country.
China has become an economic powerhouse in the past few decades, yet the country is now experiencing problems associated with their rapid growth. Despite being the second largest economy in the world, China still lags behind many developing countries.
China's GDP per capita still ranks 91 in the world, at around $9, 143. Countries like Iran and Botswana are actually richer per person. China is experiencing a huge demographic shift from the rural areas to the city, which has lifting many out of poverty. However, there is still a huge problem of inequality between the rural and urban areas. It is to say that the wealth in China is not being evenly distributed among its 1.4 billion citizens. 200 million people in China live on less than $2 a day.
The growth in GDP is expected to slow this year, and it could take until 2018 or 2019 for the country to see a level of GDP that is considered to be a rough minimum for a developed country.
4 comments:
Although I do find a bit discouraging that China, viewed as one of the most powerful nations in the world, is experiencing slow GDP growth. Especially since most of the world has continued to struggle with the recession. However, I do not find this article saying things that are uncommon, and I do believe that China has the capability of achieving the level of GDP growth needed. It has plenty of foreign relations for trade and investment, as well as a plentiful amount of other opportunities for innovation. It is how the government will set up policies, and how businesses capitalize on the opportunities in place that will decide which road the economy continues down.
China did not shift its way from communism to more of a market economy until 1979, so they are still a young country and need time to transform into a mature economy where it can provide a good standard of living for its masses. A lot of statistics in regards to China are skewed and should be taken with a grain of salt due to their immense population. China still has decades until they will be more comparable to Western developed countries like America and Europe.
I was under the impression that China was doing rather well did not have an extensive problem such as this. It is absolutely amazing that 200 million live on under 2 dollars a day. Hopefully the standards of living will improve there that is very unfortunate to read about.
So far for 2012, China is running a deficit. This could however, be a method they have not tried with their market system to improve their economy. Without government subsidies, it is difficult for rural areas to reach the level of wealth of those in the urban areas in developing countries. They don't have the same opportunities and those in the rural areas are at a disadvantage.
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