Transcript China’s Economic Growth

China’s Economic Growth
By: Martine Dulcine
Katiuska Perez
Preston Roth
China’s Past Economic Growth
 Economic Reform
began in the 1970s
 Some Reforms
included:
-Gradual Liberalization of
Prices
-The Opening to Foreign
Trade and Investment
-Fiscal Decentralization
Current Trends in Economic Growth
 China has become the
2nd largest economy in
the world
 GDP Growth in 2005
hardly slowed
 Consumer Spending
increased
 Although Exports
decreased in 2005, still
remain high
Growth Rates
20%
15%
10%
China
5%
U.S
%
0%
-5%
19
71
19
75
19
79
19
83
19
87
Year
19
91
19
95
19
99
20
03
Present Time
 China Still 2nd to USA in GDP
 Small Percentage of U.S. GDP
Ye ar
TOTAL China GDP
UNITED STATES
06
20
04
20
02
20
00
20
98
19
96
19
94
19
92
19
90
16000.00
14000.00
12000.00
10000.00
8000.00
6000.00
4000.00
2000.00
0.00
19
billions
Real GDP in 2000 dollars
Effects of China’s Rapid Growth
 Shortage of space to
expand
 China is the 2nd
highest producers of
Carbon Dioxide
 Not enough power
plant to support their
growth
 Water shortage / water
contamination
What Might Slow Down China’s
Rapid Growth?
 Undervalued currency
 Nonperforming bank
loans
 Inefficient state-owned
enterprises
 Rural-Urban income
Gap
Causes of the Rural-Urban Income
Gap
 Government programs designed to help
Urban families
 The government buys more than 50% of the
grain sold by the farm below market price
Future of Economic Growth in China
Future Projections
 Urbanization rate
 Small-medium sized
enterprises
Annual Percentage Change in Exports
2004
2003
2002
35
5
22
24
-5
2000-04
-10
35
13
1
0
10
20
percentage change
US China
30
40
Forecast of the GDP