Economic Analysis of China

Running head: ECONOMIC ANALYSIS OF CHINA
Economic Analysis of China
Name of the Student:
Name of the University:
Author Note:

ECONOMIC ANALYSIS OF CHINA
1
Table of Contents
Introduction................................................................................................................................2
Production Performance Analysis..............................................................................................3
Labour Market Analysis.............................................................................................................4
Price Level Analysis..................................................................................................................5
International Trade Analysis......................................................................................................6
Conclusion..................................................................................................................................7
Reference....................................................................................................................................8

ECONOMIC ANALYSIS OF CHINA
2
Introduction
The People’s Republic China (PRC), a socialist market economy, is the largest
economy in the world in terms of purchasing power parity. The country is also the second
largest country in terms of nominal GDP (Oecd.org 2019). China was growing faster than any
other country since 30 years, until 2015, at an average growth rate of 6%. China has recorded
a 2.7% of annual inflation in the month of August in 2019. As per the IMF data, China is the
73rd country in the list of top countries on the basis of GDP per capita in 2019 (Imf.org 2019).
China has the total banking sector assets worth of $39.93 trillion and total deposits worth of
$27.39 which is the world’s largest share. China ranks fourth in terms of inward foreign
direct investment and eleventh in terms of outward foreign direct investment. The world’s
largest reserve of foreign exchange belongs to China which is worth of $3.1 trillion (Imf.org
2019). Moreover, China’s economy is the fastest growing economy in the consumer market,
largest exporter of goods, second largest importer of goods and largest manufacturing
economy. This economy has free trade agreements with Australia, Pakistan, Switzerland,
New Zealand, South Korea and ASEAN (English.mofcom.gov.cn 2019). The largest trading
partner of the country are Japan, Hong Kong, Australia, Vietnam, Brazil, USA, South Korea
and EU. In terms of trade volume and stock exchange China’s stock exchange named
Shanghai Stock Exchange and Shenzhen Stock Exchange belongs to the largest stock
exchanges in the world. Labour force of China was the largest in the world in 2018
(Stats.gov.cn 2019). On the basis of Ease of doing business Index and Global
Competitiveness, China ranks 46 and 28 respectively (Oecd.org 2019).
Here, the report analyses the economy of China on the basis of recent 4 years of data.
An economic growth can be measured or observed by looking at the real GDP, growth rate of
GDP, per capita GDP, rate of unemployment, inflation and net export of the country. Each of