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China’s Economic Growth vs. the US
Take a close look at China economic growth vs. the US economic growth. The US is facing the possibility of recession in 2008 with the housing market slump, the credit industries tightening and with the stock market continuously falling. Yet, is China doing any better? For many investors, China's stock markets are a better option because they seem to be doing better in terms of growth. Many investors are using these markets to help them to excel and protect their portfolios from a harsh reality of a recession.
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When you look at China economic growth vs. the US, you will see that the changes in China started to happen around 1978. Starting that year, and continuing for the first part of the 1980's, the People's Republic of China made substantial reforms in economic policy. This change happened with the phasing out of collectivized agriculture with a new system of farming that provided more household responsibility. Later, gradual liberalization of the prices of products also helped to make the changes happen. Private enterprise in a variety of industries including services and light manufacturing were able to get moving, after this privatization was allowed to happen. Now, investments into the country's largest state banks by investors from international companies as well as the foreign exchange and bond market changes have allowed more room for expansion.
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Just a look at the economy of China will show impressive numbers. It is the second largest economy after the United States. China has a gross domestic product of over $7 trillion for 2007. (This takes into account measurements on purchasing power parity basis.) In nominal gross domestic product, China moved into third place, behind the United States and Japan with some $3.42 trillion in 2007.
Look at China economic growth vs. the US. China's growth is the fastest growing in the world, of major nations. It has an annual GDP growth rate that is well above 10 percent. Per capita income in the country has also grown substantially. Its average annual rate of growth has been more than 8 percent for the last thirty years. With these numbers in place, since 1978, the economy of China has grown tenfold.
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The US economic growth is still a superpower, the largest economy in the world. GDP per capita in the United States is high, at $46,000 in 2007. GDP growth rate in the country is stable and the country offers a relatively low unemployment rate. The country's economy is also cushioned with high levels of capital investment and research. There are various concerns in the current economy, though, including national debt, Social Security, mortgage debt, low savings rates, as well as the potentially looming recession.
Comparatively, China economic growth vs. the US will show you that China is moving faster in terms of growth rate. The country is considered an emerging country, with a growth rate that has far exceeded that of most other nations. Will this hold and will it be the next superpower? There is quite a bit of speculation in both directions there, but there is no doubt that stocks currently in the Chinese markets are likely to do well.
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