China Economy Becoming The Biggest
The question of how much the China economy is growing is an important one for the entire globe. Because all our economies are global now, changes in one will necessarily affect the others. China stocks are going up.
The GDP of China is increasing at a rate of 10% per year. Along with this growth, China has been buying up all the natural resources it can. There is concern that this is hurting other countries by limiting available resources. In any case, control of natural resources has always heavily influenced the global economy.
Statistics are always tricky things. They can be massaged and combined to make you view a situation in a particular way. But consider this. The GDP of China is not only growing at around 10%. The ratio of government debt in China to GDP is only 20% compared to the U. S. Which is over 60%. This ratio makes the economy in China even stronger.
The growth in the economy in China does come with some concerns. For example, it could create the same kind of bubble that has been experienced in the West. With money flooding the economy, inflation may rise, and consumers may start spending beyond their means and overextending themselves on credit. The result could well be the economic crisis currently experienced, especially in America.
Another concern is a viable market for all the goods being produced in China. With the current economy in the West being down, there is not the same market for Chinese goods as there had been. For China to continue its growth, it needs to have a market for its products as well.
For America, this is a good thing because China holds more American debt than any other nation. If China chose to sell their American bonds, the effect would be disastrous. However, as this would also spell disaster for Chinese exporting, this is unlikely to occur.
Suffice it to say that, at present, the China economy is growing and will likely continue to do so. For how long it can continue is going to depend, at least partially, on the global economy. - 23218
The GDP of China is increasing at a rate of 10% per year. Along with this growth, China has been buying up all the natural resources it can. There is concern that this is hurting other countries by limiting available resources. In any case, control of natural resources has always heavily influenced the global economy.
Statistics are always tricky things. They can be massaged and combined to make you view a situation in a particular way. But consider this. The GDP of China is not only growing at around 10%. The ratio of government debt in China to GDP is only 20% compared to the U. S. Which is over 60%. This ratio makes the economy in China even stronger.
The growth in the economy in China does come with some concerns. For example, it could create the same kind of bubble that has been experienced in the West. With money flooding the economy, inflation may rise, and consumers may start spending beyond their means and overextending themselves on credit. The result could well be the economic crisis currently experienced, especially in America.
Another concern is a viable market for all the goods being produced in China. With the current economy in the West being down, there is not the same market for Chinese goods as there had been. For China to continue its growth, it needs to have a market for its products as well.
For America, this is a good thing because China holds more American debt than any other nation. If China chose to sell their American bonds, the effect would be disastrous. However, as this would also spell disaster for Chinese exporting, this is unlikely to occur.
Suffice it to say that, at present, the China economy is growing and will likely continue to do so. For how long it can continue is going to depend, at least partially, on the global economy. - 23218
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posted by X - Men @ 2:42 AM
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