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Macroeconomics of China and it's GDP - Research Paper Example

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Macroeconomics of China and it's GDP
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Download file to see previous pages The steady increase in prices facilitated by the economic bubble suggests that China has come to a critical point of discouraging inflation within the right time: the vibrant mechanism of the economic growth in China has passed through a great transformation (Lai, 2006).
At the time the government of China opened up foreign trade, facilitated investment and implemented the free market reformation about four decades ago, China has since become among the world’s top performing economies. With the real annual gross domestic product growth that averages to nearly 10 percent through the year 2013 (Bachman, 2011). In the current years the economy of China has emerged as the main global economic and the trade power. In the world’s current competitive market China is the top merchandise trading economy, holder of foreign reserves and it also acts as the largest destination of the foreign direct investment. Fortunately, China is expected to be the worlds’ largest economy in the next one year.
Most economists forecast that China will overtake the United States of America to become the top performing economy in the world in the next few years. However, the probability of China to maintain the rapid growth of economic situation is minimal in the long run because it depends on the government for the implementation of comprehensive economic reforms (Lai, 2006). This will quickly facilitate the transition of the economy of China to a free market economy and create a balanced distribution within the economy thus creating a consumer demand rather than exportation. The government of China is greatly attached to its economy and it has acknowledged for some renovations in order to deal with some challenges effectively and efficiently (Bachman, 2011).
China is the second largest economy in the world that will soon overtake the United States. According to the outstanding ...Download file to see next pagesRead More
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