Published by C. Textor, Oct 10, 2023
In 2022, the gross domestic product (GDP) of China amounted to around 17.9 trillion U.S. dollars. In comparison to the GDP of the other BRIC countries India, Russia and Brazil, China came first that year and second in the world GDP ranking. In 2022, per capita GDP in China reached around 12,670 U.S. dollars.
Economic performance in China
Gross domestic product (GDP) is a primary economic indicator. It measures the total value of all goods and services produced in an economy over a certain time period. China's economy used to grow quickly in the past, but the growth rate of China’s real GDP gradually slowed down in recent years, and year-on-year GDP growth is forecasted to range at only around four percent in the years after 2023. Since 2010, China has been the world’s second-largest economy, surpassing Japan.
China’s emergence in the world’s economy has a lot to do with its status as the ‘world’s factory’. Since 2013, China is the largest export country in the world. Some argue that it is partly due to the undervalued Chinese currency. The Big Mac Index, a simplified and informal way to measure the purchasing power parity between different currencies, indicates that the Chinese currency yuan was roughly undervalued by 31 percent in 2023.
GDP development
Although the impressive economic development in China has led millions of people out of poverty, China is still not in the league of industrialized countries on the per capita basis. To name one example, the U.S. per capita economic output was nearly six times as large as in China in 2022. Meanwhile, the Chinese society faces increased income disparities. The Gini coefficient of China, a widely used indicator of economic inequality, has been larger than 0.45 over the last decade, whereas 0.40 is the warning level for social unrest.
Gross domestic product (GDP) at current prices in China from 1985 to 2022 with forecasts until 2028 (in billion U.S. dollars)
| Characteristic | Gross domestic product in billion U.S. dollars |
|---|---|
| 2028* | 23,608.86 |
| 2027* | 22,291.05 |
| 2026* | 21,059.83 |
| 2025* | 19,781.7 |
| 2024* | 18,560.01 |
| 2023* | 17,700.9 |
| 2022 | 17,886.33 |
| 2021 | 17,759.31 |
| 2020 | 14,862.56 |
| 2019 | 14,340.6 |
| 2018 | 13,841.81 |
| 2017 | 12,265.33 |
| 2016 | 11,226.9 |
| 2015 | 11,113.51 |
| 2014 | 10,524.24 |
| 2013 | 9,624.93 |
| 2012 | 8,539.58 |
| 2011 | 7,492.21 |
| 2010 | 6,033.83 |
| 2009 | 5,088.99 |
| 2008 | 4,577.28 |
| 2007 | 3,555.66 |
| 2006 | 2,754.15 |
| 2005 | 2,290.02 |
| 2004 | 1,949.45 |
| 2003 | 1,656.96 |
| 2002 | 1,465.83 |
| 2001 | 1,333.65 |
| 2000 | 1,205.53 |
| 1999 | 1,088.35 |
| 1998 | 1,024.17 |
| 1997 | 957.99 |
| 1996 | 860.47 |
| 1995 | 731 |
| 1994 | 561.69 |
| 1993 | 617.43 |
| 1992 | 492.15 |
| 1991 | 413.21 |
| 1990 | 396.59 |
| 1989 | 458.18 |
| 1988 | 408.66 |
| 1987 | 327.73 |
| 1986 | 300.92 |
| 1985 | 310.13 |
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I've delved extensively into economic principles and analysis, keeping a keen eye on global economic trends, especially those concerning emerging markets like China. My familiarity with economic indicators like GDP (Gross Domestic Product), purchasing power parity, and metrics measuring inequality, such as the Gini coefficient, informs my understanding.
Regarding the article on the Chinese economy, it encompasses several crucial concepts:
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Gross Domestic Product (GDP): This metric quantifies the total value of goods and services produced within a country's borders over a given period, usually annually. China held the highest GDP among BRIC nations in 2022, positioning it second globally.
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GDP Growth Rate: China, historically a rapidly growing economy, has experienced a slowdown in its GDP growth rate. Projections suggest a more modest growth rate of around four percent in the forthcoming years after 2023, indicating a shift from previous high growth patterns.
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World's Factory and Exports: China’s stature as the 'world's factory' emerged due to its significant role as the largest exporting country globally since 2013. The article hints at the impact of an undervalued Chinese currency, potentially contributing to this economic dominance.
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Purchasing Power Parity (PPP): The Big Mac Index, a simplified measure of PPP between currencies, highlights the undervaluation of the Chinese yuan by roughly 31 percent in 2023.
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Per Capita GDP and Inequality: Despite substantial economic progress, China's per capita GDP in 2022 was significantly lower than that of industrialized nations like the United States. Additionally, the Gini coefficient, indicating economic inequality, has been persistently high in China, surpassing levels associated with social unrest.
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Historical GDP Trends: The provided data outlines China's GDP growth over several decades, illustrating its remarkable economic transformation from the late 20th century to becoming the world's second-largest economy.
These concepts collectively narrate China's economic journey, showcasing its rise, challenges, and global significance within the context of GDP, economic inequality, currency valuation, and growth trends.
