[ECON]105macro.e Dev. of China

7/29/2019 [ECON]105macro.e Dev. of China

1/13


2/13

Countrys data at a glance

China

Region: East Asia and Pacific

Income level: Upper Middle Income

Population, total: 1,338,299,512(2010)

GDP(current US$): $5,878,629,246,677(2010)

GDP growth(annual %): 10.3%(2010)

Inflation, GDP deflator(annual%): 5.8%

China has had a remarkable period of rapid growth shifting from

a centrally planned to a market based economy. Today, China is

a lower middle-income country that has complex development

needs, where the Bank continues to play an importantdevelopment role. Sources from: www.worldbank.org


3/13

Reasons of China's rapid economic development in a

quarter of a century

Since the beginning of 1970s, China has entered a historical period of economic reform,

opening up and modernization. Within a timeframe of 25 years, the Chinese economy has

consistently maintained its rapid growth momentum. During such a period, China's annual GDP

growth rate was averaged at 9.4 percent, the income and living standard of urban and rural

residents continuously improved, and foreign trade volume expanded by 16 percent each year.Utilized foreign direct investment reached USD676.9 billion and the official foreign exchange

reserves increased from USD19.4 billion to USD403.3 billion. China now is the 2th largest

economy in the world, with its overall economic strength markedly improved. Per capita GDP

was quadrupled in 20 years up to the end of last century.

There are several reasons for the eye-catching achievements in terms of social and economic

development in China.

www.pbc.gov.cn/publish/english/956/1940/19405/19405_.html


4/13


5/13



Second, steadfast in advancing economic opening up to integrate into the world economic

development. We have ended China's isolation from the world economic development and

opened the Chinese economy to the outside world at different levels on a broad scale. Efforts

have been made to take full advantage of both the internal and external resources and markets to

effect China's competitive advantage in the global economy. On November 11, 2001, Chinajoined the WTO, marking an important step forward for China's economic opening up and reform.

In 2003, China's total goods trade volume amounted to USD851.2 billion, ranking the 4th place in

the world. Inflow of FDI totaled USD53.5 billion, topping all the developing nations. Rapid

growth of trade and continuous increase of FDI have not only contributed to the expansion of

export and job creation, but also substantially increased the import of much needed scarce

resources and equipments. Furthermore, the inflow of advanced technology and managementskills has helped to boost China's technology and competitiveness, providing additional support

to economic reform.



6/13



Third, we have always been conscious of striking a balance between reform, development and

stability. China is a big developing country with a population of 1.4 billion and large disparities

in terms of regional economic development. It is by no means an easy job to press ahead with

economic reform and modernization and make everyone live a comfortable life in such a country.

One important piece of our experiences is that adequate attention must be paid to handle therelationship between reform, development and stability. In our view, stability, namely the social,

political and economic stability constitutes the prerequisite to ensure steady progress of economic

reform and development. Since reform will more or less affect the interests of almost all the

parties in the society, it is important to make the reform endurable to the individuals, enterprises

and all other social sectors. Under the leadership of the Chinese Communist Party and taking into

consideration of the Chinese situation, we have embarked on a path of reform gradualism to builda socialist market economic system with Chinese characteristics. That is to say, we will on the

one hand stick to the mandate of socialist market economic reform, while on the other hand give

full consideration to the endurance of all walks of life, and strive to make the reform benefit most

of the people in the society.



7/13



In practice, sweeping reforms are usually introduced when favorable conditions arise, and the

pace of reform will be slowed down if conflicts intensify. All in all, in the process of economic

and social development, we have always made the harmony between the strength of reform, the

speed of development and the endurance of the general public a top priority, and targeted a

persistent improvement of the people's living standard as the lock-point for handling relationshipamong the three factors. Such a consensus has contributed to the mutually re-enforcement of

reform, development and social stability.



8/13



Despite the outstanding achievements mentioned above, we should remain clear about the fact

that China is still a developing country with large population. Though large in absolute size,

China's GDP measured by per capita is still very low, with the 2003 figure just exceeding

USD1000. Myriads of problems, including slow growth of the farmers' income, pressures on

employment and social security system, regional development disparity, widening gap of incomedistribution and degradation of environment etc., remain to be conquered on our way moving

forward. Since these problems emerge in the process of development, they must only be

addressed in the process of development.

National Poverty Rate of China

Year Rate(%)

1996 6

1998 4.6

2004 2.8

Sources from: www.worldbank.org



9/13

0

2

4

6

8

10

12

14

16

1975 1980 1985 1990 1995 2000 2005 2010 2015

China's GDP Growth Rate(%)

China's GDP Growth Rate

Year Rate(%) Year Rate(%) Year Rate(%)

1961 -27.1 1989 4.1 2000 8.4

1962 -6.1 1990 3.8 2001 8.3

1963 10.3 1991 9.2 2002 9.1

1964 15.8 1992 14.2 2003 10

1965 16.4 1993 14 2004 10.1

1966 10.7 1994 13.1 2005 11.3

1967 -5.7 1995 10.9 2006 12.7

1968 -4.1 1996 10 2007 14.2

1969 16.9 1997 9.3 2008 9.6

1970 19.4 1998 7.8 2009 9.2

1971 7 1999 7.6 2010 10.3

1972 3.8

1973 7.91974 2.3

1975 8.7

1976 -1.6

1977 7.6

1978 11.7

1979 7.6

1980 7.81981 5.2

1982 9.1

1983 10.9

1984 15.2

1985 13.5

1986 8.8

1987 11.6

1988 11.3



10/13

0

5

10

15

20

25

30

35

1955 1960 1965 1970 1975 1980 1985 1990

Merchandise Trade Percentage at GDP ofChina Percentage(%)

Merchandise Trade Percentage at GDP of China

Year Percentage Year Percentage Year Percentage

1960 8.50 1988 33.21 1999 33.29

1961 7.36 1989 32.47 2000 39.57

1962 7.07 1990 32.34 2001 38.47

1963 6.92 1991 35.76 2002 42.70

1964 6.76 1992 39.16 2003 51.86

1965 6.90 1993 44.43 2004 59.77

1966 6.80 1994 42.31 2005 63.00

1967 6.33 1995 38.58 2006 64.89

1968 6.30 1996 33.86 2007 62.29

1969 5.52 1997 34.13 2008 56.69

1970 5.01 1998 31.78 2009 44.22

1971 4.98

1972 5.83

1973 8.10

1974 10.47

1975 9.69

1976 8.97

1977 8.51

1978 14.23

1979 16.55

1980 20.08

1981 22.68

1982 20.48

1983 19.09

1984 20.80

1985 22.70

1986 24.79

1987 30.57 Sources from: www.worldbank.org


11/13

0

1

2

3

4

5

6

7

8

9

10

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Exchange rate from US Dollar to Chinese Yuan()

Exchange rate from US Dollar to Chinese Yuan

Year Rate() Year Rate() Year Rate() Year Rate()

1971 2.462 1981 1.705 1991 5.323 2001 8.277

1972 2.245 1982 1.893 1992 5.516 2002 8.277

1973 1.989 1983 1.976 1993 5.762 2003 8.277

1974 1.961 1984 2.32 1994 8.619 2005 8.0702

1975 1.859 1985 2.937 1995 8.351 2006 7.8087

1976 1.941 1986 3.453 1996 8.314 2007 7.304

1977 1.858 1987 3.722 1997 8.29 2008 6.8447

1978 1.684 1988 3.722 1998 8.279 2009 6.82702

1979 1.555 1989 3.765 1999 8.278 2010 6.60231

1980 1.498 1990 4.783 2000 8.279 2011.11.14 6.35574



12/13

0

1

2

3

4

5

6

1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990

Unemployment Rate of China(%)

Unemployment Rate of China

Year Rate(%) Year Rate(%) Year Rate(%)

1980 4.9 1990 2.5 2000 3.1

1981 3.8 1991 2.3 2001 3.6

1982 3.2 1992 2.3 2002 4

1983 2.3 1993 2.6 2003 4.3

1984 1.9 1994 2.8 2004 4.2

1985 1.8 1995 2.9 2005 4.2

1986 2 1996 3 2006 4.1

1987 2 1997 3.1 2007 4

1988 2 1998 3.1 2009 4.3

1989 2.6 1999 3.1

World Unemployment Rate

Year Rate(%)

1994 5.29

1995 5.30

1996 5.08

1997 5.40

1998 5.60

2000 5.58

2004 6.59

2005 6.17



13/13

Documents

[ECON]105macro.e Dev. of China