GDP: The Global Dash for Prosperity
Source:IMF
-China-
"The Global dawn of the Spherical markets is a much like a ride in a hot air balloon smooth and comfortable , but hard to steer and there is always a fear of a catastrophic collision."
The marathon to GDP growth continues as Asia is on the move. China has recently overtaken Japan as the world’s second biggest economy.
According to the IMF , China has had an astonishing growth of 10% in 2010, that is higher than all of the advanced and large emerging economies, with the US and UK at 2.6% GDP.But what do these numbers mean? Well even though this growth is phenomenal there is a little more to it, first given the population difference between China’s billion plus population vis-à-vis other advanced economies. Another important consideration is the GDP per capita, China has a significantly lower per capita GDP, it is 1/11th that of Japan and the US and so China still has a long run to prosperity.
According to many analysts China’s GDP would still not surpass the US in this decade. However, other economist believe that China’s economy is sound and stable and might overtake the US number one spot in 10 years or so. However, China has yet to deal with a plethora of national as well as international concerns.
International
This Global Dash for prosperity is becoming fierce as the world trade market is becoming “sphericalized” and the Western societies urged for open and more global economies that enticed the “rise of the rest”
"The Global dawn of the Spherical markets is a much like a ride in a hot air balloon smooth and comfortable , but hard to steer and there is always a fear of a catastrophic collision."
The marathon to GDP growth continues as Asia is on the move. China has recently overtaken Japan as the world’s second biggest economy.
According to the IMF , China has had an astonishing growth of 10% in 2010, that is higher than all of the advanced and large emerging economies, with the US and UK at 2.6% GDP.But what do these numbers mean? Well even though this growth is phenomenal there is a little more to it, first given the population difference between China’s billion plus population vis-à-vis other advanced economies. Another important consideration is the GDP per capita, China has a significantly lower per capita GDP, it is 1/11th that of Japan and the US and so China still has a long run to prosperity.
According to many analysts China’s GDP would still not surpass the US in this decade. However, other economist believe that China’s economy is sound and stable and might overtake the US number one spot in 10 years or so. However, China has yet to deal with a plethora of national as well as international concerns.
International
- Economic Imbalance: China’s wealth is largely based on amassed foreign reserves. ($2.4 trillion) Most of which are Chinese bond purchases from the US.
- Currency: Undervaluing of the Yuan in efforts to boost exports and labour is raising questions about manipulating currency by the EU and the US.
- Wide wealth and digital gap: High imbalances in the distribution of wealth and technology.
- Overpopulation( current population and mass migration): Most people live in Eastern half.
- Unemployment and lack of benefit systems: Corruption and “non-existence” of social insurance
- Lack of health systems, sanity concern, and spread of STDs
- Urban industrial pollution (digital, factories, etc..)
- Other Media and government issues.
This Global Dash for prosperity is becoming fierce as the world trade market is becoming “sphericalized” and the Western societies urged for open and more global economies that enticed the “rise of the rest”
