Analysis of Macroeconomics in Shanghai

Running head: Macroeconomics
MACROECONOMICS
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1
Macroeconomics
Table of Contents
Introduction......................................................................................................................................3
Analysis...........................................................................................................................................4
GDP growth.....................................................................................................................................4
Inflation rate within the economy....................................................................................................6
Unemployment rate.........................................................................................................................8
Conclusion.......................................................................................................................................9
Reference list.................................................................................................................................11

2
Macroeconomics
Introduction
Analysis of the economic status is important because of the fact that it will identify the
gaps in their fiscal and monetary policies. Moreover, in identifying the economic status of the
country like Shanghai will be helpful for the policymakers to forecast the futures of their
economy and will determine future policies so that they can perform better. Inflation, GDP
growth and unemployment rate prevailing within any country is main concerns for the
policymakers. This is because through the inflation control policies the government will be
mainly looking to control the price of the commodities and will monitor how the rising price will
be affecting growth of the economy. Considering the factors in the form of GDP growth and
unemployment rate will definitely help the country in minimizing cost of production and
maximize both quality and quantity of goods.

3
Macroeconomics
Analysis
Understanding of GDP, inflation rate and unemployment rate is going to make an
analysis regarding the improvement in the resource distribution in the economy.
GDP growth
2013 2014 2015 2016 2017
2225.77 2406.09 2564.35 2817.87 3013.39
Growth in GDP in Shanghai (RMB)
Growth in GDP in Shanghai (RMB)
Figure 1: GDP growth rate of Shanghai 2013-2017
(Source: Ceicdata.com, 2019)
Shanghai became the first city in the China to become world’s second largest economy
and the amount of GDP growth is about $469 billion1. The growth in the economy has been
achieved due to joint efforts given by local and national level governments. However, in the last
year, the growth in the GDP in the manufacturing and service sectors were recorded at 5.8% and
7.5% respectively. Since 2011, the industrial growth was high and it was seen that manufacturing
and strategic emerging industries witnessed high growth.
1 "China | CN: GDP: Shanghai | Economic Indicators." Ceicdata.com. N. p., 2019. Web. 29 Apr.
2019.