According to the latest official information, the growth of the Chinese economy has developed so rapidly that today everyone unanimously declares with confidence that it is the Chinese economy that has become the second in the whole world! The question of what explains the rapid growth of the Chinese economy is not too complicated in modern world because, after analyzing market prices and the purchasing power parity of this country, it immediately becomes clear that China must necessarily lead in the world rankings.
How to explain the rapid growth of the Chinese economy?
World experts in the field economic development argue that the growth rate of the Chinese economy has increased so much in recent years that even exchange rates, especially the dollar, cannot in any way affect the fluctuation of the Chinese economy in leading positions in the world. Some of them are of the opinion that in the near future this country will even be able to overtake Japan's GDP in terms of financial indicators.
Most recently, the director of the State currency board China announced that it was his country that became the owner of the second economy in the world. But despite this, he noted that the Chinese government is ready for the fact that subsequently growth economic situation in the country, China will have to experience some slowdown in such a rapid development trend national economy.
But, despite the speech of the representative of the Chinese government, it is still impossible to accurately and confidently say that the country will be able to overtake the economy of Japan, which has been holding a leading position in the world for four decades. Today it becomes clear that purchasing power parity is a clear indicator that China, in fact, ranks second among the world's economies. The reason why it has not yet been officially said that this particular country is one of the leaders of the world economy is that this moment economic indicators China is constantly underestimated.
Rapid growth: China's economy
To date, in the comparative table, China's GDP has nearly matched that of Japan's: $4.900 trillion versus $5.080 trillion. As for Chinese economists, they say that in order for their country to finally be able to bypass Japan in the world ranking of economic development, it is necessary to remove the main obstacle, which is the yen.
According to the report of the United Nations, it is China, together with India, that will become the territories where the most violent the economic growth. In addition, one should pay attention to the fact that the main reason for the rapid growth of the Chinese economy is that it is precisely such a promising goal that the government of the country itself has determined for itself. Without a doubt, Chinese officials have managed to achieve clear success towards achieving the final goal: already in 2010, the Chinese economy became the third largest in the world. Today, the trend towards rapid and rapid growth is increasing more and more.
Thus, economic growth was 8%, as planned by the Chinese government. In the same time, industrial production increased by as much as 11%, as previously promised by the Minister of Industry of China.
Despite the fact that during a constantly developing economy, China was acutely threatened by a recession, she managed, nevertheless, to maintain a fairly impressive growth rate of the national economy. The government began to improve the state of the economy by adopting a special stimulus package for the economy and a sharp increase in bank lending.
To date, the rapid growth of the Chinese economy is planned due to the growth of foreign trade turnover, especially exports by 15%. Due to the rapid economic growth of China in other countries, the unemployment rate is increasing. In addition, for the same reason, other countries are losing their influence on the world market. That is why financial experts predict that in the near future:
- China faces numerous disputes related to trade;
- the Chinese government will have to answer for violations of free trade rules;
- the Chinese government will have to fight the economic overheating, which consists of rapid inflow and growth of the money supply.
Free trade violations are already known today: Beijing forces its American counterparts to sell books, films and music exclusively in cooperation with Chinese state-owned companies.
But, despite some problems that appear in the Chinese economy, the government is successfully managing to deal with them. So, the expected results have already been observed recently, that is, consumers are increasing their spending. According to official information, the Chinese government plans to increase consumption by its population in order to turn the national economy into an engine of economic growth.
In addition, it should be noted that the government is currently implementing a large-scale program for state stimulation of GDP growth. Thus, it prepares the entire economy of the country for very strict structural reforms that can free the economy of the role of exports and investment in it. In the future, it is planned to increase investments abroad in order to ensure sufficient profitability of its foreign exchange reserves. In addition, the government is determined to acquire securities, which are owned by commodity companies.
Video: China's GDP Growth
(3 Votes)
The main factors behind the phenomenal growth of the Chinese economy are as follows.
The first factor is the effective role of the state in the economy, which actively influenced and continues to influence ongoing processes at all stages of economic reform. In Chinese reform theory, the term “an integrated system of macroeconomic control implemented through economic leverage” is used to designate the role of the state. Chinese leaders gradually, step by step, as the need matured, built a market (institutions, competition, private property) and in parallel supported and modernized state-owned enterprises.
Supporters of "shock therapy", which includes four main elements: price liberalization, liberalization of foreign trade and the exchange rate, denationalization and privatization of state-owned enterprises, pursuing a non-inflationary macroeconomic policy, believe that this is enough to quickly align the price structure to the world level and build market institutions, and then the market itself will regulate economic processes. Followers of the shock model understand that the privatization of state-owned enterprises will inevitably lead to an increase in unemployment until the private sector begins to absorb excess labor. Therefore, the shorter the transition period, the sooner, according to the supporters of "shock therapy", the economy will stabilize. For example, Jeffrey Sachs argued this as follows: "if you are going to cut off a cat's tail, then it is better to do it in one fell swoop than cut it in pieces." It is believed that, since the pain will be short-lived, political opposition to the reforms will soon die out, without having time to lead to the abolition of the reforms.
Chinese proponents of "gradualism" argue that the above four elements of "shock therapy" need not be administered simultaneously and instantly. They believe that the process should take place gradually, sector by sector, stretching over many years, and at this time (before the launch of the market autopilot) the role of the state is exceptionally large. The “gradualist” approach can be characterized by four principles. First, price reform may be incomplete and gradual (China's parallel price system). Secondly, the emergence of foreign competitors in the domestic market must be gradual so as not to lead to the collapse of the national industry. Thirdly, the privatization of state-owned enterprises is not necessary at the first stage of reforms, and private property can be developed not instead of state property, but together. Fourth, the transition to market economy can be carried out without excessively tight macroeconomic policies: " money-credit policy may not be hard or soft, but supporting the production necessary for the country. Fifth, the order (priorities) of reforms is important, synchronization does not mean the simultaneity of all reforms, but their consistent mutual influence. In China, rural reform preceded urban reform, and price reform preceded the reform of property and property rights. At the same time, it is impossible for individual links of reforms to be too ahead of others, and some, on the contrary, to lag behind.
Depending on the stage of formation market mechanisms the functions of the Chinese state and especially the forms of their implementation changed. Direct methods of management were replaced by indirect methods, directive planning was replaced by indicative planning and forecasting, the center of gravity of state intervention was transferred from the microeconomic level to the level of macroeconomic regulation and, most importantly, administrative methods regulation of economic processes were replaced by market ones.
The analysis shows that the public administration system that existed at all stages of the Chinese reforms was adequate to the tasks economic modernization countries, which made it possible to turn China into a modern powerful state.
The second factor is significant resources / labor / with a constant improvement in their quality and low wages (surplus labor in the labor market has allowed and allows to keep wages at a low level). The physical growth of the population and the movement of labor from labor-surplus areas to new points of growth provided in the period 1978-1988. about a third of GDP growth.
The third factor is a high share of savings and investment (above 30% of GDP), complemented by effective strategies to attract foreign investment primarily in high-tech industries. According to many Chinese experts, investments also provided about a third of GDP growth.
The fourth factor is the openness of the economy (kaifang zhetse), based on an export-oriented development model, which involves increasing the technology and science intensity of the economy through the growth of foreign exchange earnings, mastering the latest information and communication technologies, and introducing modern industrial logistics schemes.
The fifth factor is a favorable territorial and natural location. Of no small importance in the success of China is the geographical position of its territory. In the historical process of the formation of its territory, expansion in the south and northwest direction gave the country access to the Pacific Ocean, its territory included the shortest land routes from the shores of the Pacific Ocean to the countries of Europe. China has the third largest territory in the world (after Russia and Canada).
On the territory of China there are a number of large fuel (oil, coal, gas), various ore and non-metallic mineral deposits (tungsten, lead, zinc, vanadium, titanium, tin, molybdenum, nickel), as well as building materials(gypsum, barite, phosphate ores, micas, asbestos, kaolin). In terms of potential water resources, China ranks first in the world. However, on a per capita basis, China is not that rich in natural resources, especially water, forestry, and land (arable) resources.
Thus, the Chinese practice of economic growth is simple and does not contradict the theory: at the expense of the savings of the population and overseas Chinese (huaqiao), the state equipped the infrastructure and stimulated the creation of new jobs in the private sector parallel to the public sector, which supplied its products for export, and sent foreign exchange earnings to purchase of new technologies and modernization. Gradually, the level of consumption also increased, which increased domestic demand and stimulated the influx of new investments already in the form of global TNCs, which were eager to access the giant Chinese market.
Thanks to a long period of steadily high growth in GDP (the highest in the world) and exports (Fig. 1.5), the absolute and relative size of savings and investments, including foreign ones, the involvement in industrial production and the service sector of millions of the population (Table 1.1), China managed to create a modern industry, significantly expand and improve infrastructure (box 1.1), create a variety of industrial sectors previously absent in the country and thereby significantly increase the share of industry and services in GDP (Table 1.1).
* Accumulation fund in national income.
** According to Chinese statistics, the primary sector is agriculture and forestry, the secondary sector is industry, energy, construction, and the tertiary sector is services, transport, education, healthcare.
Source Yearbooks of Chinese Statistics.
This article is from the section- success factors for economic reforms in china which is dedicated to the topic China's Economic Growth - Phenomenal Growth Factors. Hope you appreciate it!
An interesting video about the development of China
"Learn Chinese if you are in business." Today, not a single serious international business forecast is complete without an analysis of China's development prospects. In 2011, the Chinese economy officially became the second largest in the world after the United States, leaving behind Japan. And by 2040 it will become the largest on the planet - claims Nobel laureate in Economics Robert Fogel
You predict that China's gross domestic product will grow from the current $6.5 trillion to $123 trillion by 2040. To do this, the Chinese economy needs to grow at a rate of 10 percent annually. But the Chinese government recently said it expects the economy to grow by 7% in the coming years. How might this data affect your prediction?
No way. My estimates are based on annual growth rates real capital- human and physical, and not at the price level. I make all measurements in 2000 dollars, so I expect the real growth rate of the Chinese economy to be at the level of 8-10%.
Growth prospects
For what?
The rate of return on capital invested per worker, that is, the efficiency of production in China, is very low today. Through the introduction of advanced and more efficient technologies, labor productivity, capital productivity and business profitability can grow tenfold. In addition, there is a process of flowing cheap labor from agriculture to industry and services - this provides about a third of China's GDP growth. If China manages to keep growth rates at the level of 5-6% in the main industries, then another 2-3% will be provided by internal migration in the labor market. This will add up to 8-9% growth per year, which will allow to increase almost 20 times country's GDP for 30 years. China is developing according to the Western model, repeating the path that all the richest countries in the world have traveled. For example, at the beginning of the 19th century in the United States, 80% of workers were employed in agriculture, and today only 2% * * In China today, about 50% of the economically active population is employed in agriculture, 20% in the service sector and about 10% in industry.. Another issue is that the Chinese economy, unlike the United States, is growing by borrowing existing Western technologies and applying them in local production processes. And this pattern will continue for the next 30 years.
Do you rule out apocalyptic scenarios - that the world is waiting for a war for resources and new territories, and above all from China?
I think that the Chinese authorities will not go for military adventures: they are interested in becoming rich as quickly as possible. Every Chinese leader dreams of saying, “It was during my lifetime that China went from being a very poor country very rich." This is the goal on which Chinese politicians will be focused in the coming decades.
Pay attention to what percentage of GDP they spend on military needs - 2%! Compared to the US or the EU - very modestly * * According to the Stockholm Peace Research Institute, Americans spend about 4% of GDP on military needs, Russia - 3.5%, the EU - about 2%..
Shakespeare vs Confucius
Chinese is the most widely spoken language in the world, with over 1.3 billion speakers. However, English is still the main language of business. Could it be that in the next half century, the language of Shakespeare will be supplanted from the business circulation by the language of Confucius?
I always tell my students: learn Chinese. And if someone is going to do business and build partnerships with Chinese entrepreneurs, then knowing the language will be a competitive advantage compared to those who do not speak it. But don't expect English to disappear so quickly from the world stage: it is widely spoken in China, and children in schools learn it for about 6-7 years.
You will be surprised, but to a certain extent, China today is a more capitalist country than the United States of America.
Chinese students and scientists can be found at universities in almost every developed country. In 30 years, the flow will return, and will Americans and Europeans already be drawn to Chinese universities?
No, in 30 years this will definitely not happen, because the Chinese are borrowing technology. However, in the coming decades, we will see that in a number of branches of natural science knowledge, Chinese scientists will begin to occupy a leading position.
For now, the Americans are educating the Chinese, but not vice versa. For example, some professors from China teach in the United States for half a year, and at home for half a year. Moreover, according to my estimates, about 2 thousand professors and associate professors involved in economics. Prominent American economists advise senior Chinese government officials.
You will be surprised, but to a certain extent, China today is a more capitalist country than the United States of America. The Chinese have discovered the free market and believe that such a market is the best engine for their economic growth. They have been systematically reducing the size for 40 years. public sector in the economy: if in the late 1970s it reached about 40%, today it is about 20%.
What will happen to the yuan? Is it worth waiting for its devaluation, and if so, how can this affect the dollar, which today serves as the world's reserve currency?
This question is purely political. But even if the Chinese leadership decides to devalue, the effect will not be as formidable as experts draw: Chinese goods will not become more expensive than American ones. Keep in mind that only 15% of all goods consumed in the US are imported from abroad. Therefore, the increase in prices for Chinese goods will be at the level of the average increase in prices in the US - about 1%. It may be objected that everyone around is only talking about the fact that Chinese manufacturers have an advantage over American manufacturers due to the undervalued exchange rate of their currency, so we should erect trade barriers against them by raising duties on foreign goods. In fact, Chinese manufacturers do not have such an advantage, and American politicians and congressmen are engaged in pure populism and mislead their voters. Concerning US dollar, then in the foreseeable future, nothing threatens its status as a world reserve currency.
China's technological and socio-economic progress over the past 15 years is incredible and unimaginable. In a very short period of time, China has managed to build a powerful, highly diversified and competitive civilization.
Modern history (20-21 centuries) knows no precedent for such a grandiose breakthrough in such a short period of time. high base. There are examples of the rapid rise of the USSR in all areas of the economy and economy since the late 20s of the 20th century, the rapid industrialization of the United States in the middle of the 20th century, the outstanding recovery rates in Germany and the USSR in the post-war period, the technological saturation and external expansion of Japan from the 70s to the 90s, but China? You know, it is developing at a monstrous pace in absolutely all areas, and economies of scale are also of great importance. China's population surpasses that of 28 EU countries, the US and Japan combined. In this sense, China has a certain fundamental advantage, which is a huge domestic market.
The Chinese miracle was built in several stages. After the collapse of the communist system in the late 1980s and in the wake of globalization, China attracted over $3 trillion in direct investment, more than $1 trillion of which was investment in China's industrial structure by transnational corporations with the right to establish branches of TNCs in Chinese jurisdiction. Those. this is not the purchase of shares in Chinese companies and long-term direct investment in Chinese debt instruments, but direct investment by foreign companies in China's industrial infrastructure for the subsequent sale of products on the world market.
China has become the main recipient of foreign investment from global TNCs. Why is China the world's factory, and not India or Africa, where labor is even cheaper?
To conduct business, TNCs require:
Availability transport infrastructure(roads, airports, ports, railways);
Availability of energy infrastructure and supply (electricity, fuel, gas);
Utilities (water supply, sewerage, treatment plant, garbage disposal);
Communication and logistics (availability of access to telephone, Internet, courier deliveries);
Ensuring the safety of enterprises and employees ( low level crime, developed law enforcement system);
Sane legal system(Guarantees of retention of ownership of investments and assets, protection of intellectual property and opportunities for marketing products);
Educated and able-bodied population. The issues of personnel qualification are very important, and TNCs are engaged only in advanced training and retraining within the framework of industry specifics, but not in training the base).
Low taxes;
Low intermediate costs for servicing enterprises (rent, electricity, fuel, utility bills, communications, logistics, resource supply, construction cost, and so on);
The full cost of wages (salary level, personal income tax, social payments, insurance, and so on).
It is clear that Africa, having huge free labor resources and extremely cheap labor, will not become the new China due to the lack of the necessary infrastructure for doing business, often a complete lack of security and legal guarantees, an uneducated population without a work culture. TNCs will not build power plants, roads, ports at their own expense and send an army to protect factories, while educating the population.
China provided all this in full, providing TNCs with sterile conditions for investment and a population ready to work 12 hours a day. Depending on the region and industry, for every job created by a TNC in China, between 8 and 15 new jobs were created through the multiplier. It is clear that the industrial infrastructure needs to be supplied, from here transport, communications, construction, the financial sector developed in China, and the metallurgy, mechanical engineering, building materials and electrical equipment sectors rushed to ensure construction.
Population from rural areas moved to the cities, and the cities themselves swelled quantitatively and improved qualitatively - widespread urbanization took place. In the early 90s in China, up to 60% of the workforce (or almost 400 million people) were employed in agriculture, fishing, now there are about 200 million or 28%. Almost 200 million working people have settled directly or indirectly in industrialized cities and suburbs, and together with their families, this is more than half a billion. The greatest migration of people in the history of mankind in less than a quarter of a century.
The income base generated in China's industrial cluster under TNCs was returned to the Chinese economy and reinvested and multiplied multiple times. Workers in the factory, having received a salary, created demand, for example, for food, clothing, household appliances, medical, cultural and entertainment services, and so on. This, in turn, created jobs in commerce, healthcare, leisure, and the list goes on. Positive feedback in unwinding spirals created more and more new jobs in technological segments, gradually replacing the archaic.
But China had a fundamental vulnerability. China has de facto given sovereignty to the will of top managers and owners of TNCs. Chinese exports were not sovereign, because at the initial stage, 80% or more consisted of intermediate and final products owned by TNCs.
As the well-being of the population grows, their efficiency and returns decrease (because the more prosperous a person is, the less intensively he works in difficult working conditions, in production, in mines, in agriculture, and so on), along with this, appetites and requirements grow. . China, in this sense, fell into a trap. The faster the country developed and the well-being of the population grew, the lower the potential ability to serve gigantic exports and the lower the attractiveness of China in the eyes of international investors. Therefore, sooner or later there will be a limit to economic growth in the formation of the "world production site".
The Chinese leadership understood this not 5 years ago or even 10 years ago, but even earlier. In the late 90s, right on the trajectory of world globalization and over-aggressive investment in China by TNCs, the Chinese leadership, in turn, used this unique moment to create conditions and factors for a long-term growth model based on the generation of domestic demand on its own.
The period from 1998 to 2009 was characterized by insane investment activity and urbanization. They built cities from scratch, developed social, cultural, industrial, transport, network infrastructure in all aspects and at all levels. We can say that China rebuilt from scratch in just 15-20 years.
Having nothing, in less than half a century, China has become probably the most modern and progressive country in the world in terms of infrastructure development and the creation of industrial clusters at all levels - from zero (coal, ore, grain, timber) and low redistribution to high-tech areas and ultra-high tech. At the same time, both the infrastructure of the plants and the equipment are the most modern in the world, if we take the entire industry according to comprehensive estimates. The expansion is so significant that now less than 2% of China's industrial fixed assets have a service life of more than 25 years. By industry standards, everything is very modern. There is nothing like it anywhere in the world.
China wasted no time. The Chinese adopted managerial and administrative experience, learned technological innovations from TNCs. Having understood how to build factories and how to manage them, the Chinese began to create their own.
Each of you knows Chinese fakes in clothes, for example, not branded Adidas and Nike, but Chinese Abibas and Nuke, which copy the design, composition and structure of the original fabrics and are often sewn in similar factories and in especially neglected cases in the same factories as the original on the night shift (sometimes even with a complete copy of the logo and design).
So, the specifics of the first phase of China's industrial expansion on its own consisted in imitation, copying Western brands with minimal changes. It can be said that the companies are clones of the originals. These are products as they were exported (usually to the poor countries of Asia, Africa, of Eastern Europe, Middle East) under the guise of "nonames", and occupied a niche in the domestic markets. The proportion is approximately the following: 20-25% for export, the rest at home. This is about light industry.
But with mechanical engineering, not to mention high-tech, it is more difficult. Taking a modern German BMW or an American processor into the “garage”, there is no way to create a copy, even after careful reengineering. It already needs brains, stands, laboratories and technologies.
The transition from automatic copying to creating our own products in China was very fast (7-10 years).
The period from 2009 to the present is characterized by some attenuation of unstoppable investment activity in fixed assets with a focus on domestic demand, optimization of production chains and capacities, extensive development of technologies with the main goal of creating our own competitive technologies and products that can effectively and without compromise replace imports ( essentially import substitution), and in the future to go for export. First to nearby Asian countries, then to Europe.
China began to focus more attention not on quantity, but on quality. Increasing labor productivity, increasing the efficiency of production capacities, increasing the efficiency of using infrastructure and fixed assets, real, and not imaginary, diversification of all systemically important industries that provide high added value. So that the crisis in one industry is offset by growth in others.
Since 2009, a full-fledged middle class has begun to crystallize in China - those who do not experience any problems in everyday operating expenses and can, WITHOUT attracting credit resources, provide purchases of food, clothing, household appliances, digital equipment, pay utility bills, medicine, education, attend entertainment activities to do overhaul premises (once every 5-7 years) and travel (once a year), while even postponing the cash. However, when buying real estate or a car, you may need loans. There are now more than 65 million such people in China (slightly less than 10% of those employed), which in absolute terms is TWO times higher than in the Eurozone, where about 32-34 million people out of 151 million employed belong to the middle class and 37-40 million in the United States from 150 million employed. The middle class in China is comparable to the middle class in the US and the Eurozone combined, and this is an outstanding achievement, considering that 20 years ago in China no more than 7 million could classify themselves as middle class.
China is focusing on development human capital and technologies. The authorities were quite clearly aware of the threat that TNCs could pose, since a change in the environment (economic, financial or political) and the subsequent exit of TNCs from China could bring down the Chinese economy, so the Chinese need their own companies and technologies.
In 2014, China invested in R&D (both fundamental and applied from the state and business) over 370 billion dollars at PPP, overtaking in 2013 the united progressive Europe of the 15 leading countries, and in 2008 made Japan. In the mid-90s, Chinese investments in science were approximately the same as in Russia, but now they are 10 times higher. China is still behind the US (460 billion), but by 2018 (in just 2 years), China will become the most active investor in science and technology in the world! In this area, the effect of accumulating a critical mass of knowledge and experience matters. Technological breakthroughs do not occur linearly, they have a stepwise formation, so there is no doubt that China is on the right track and in the long run everything will be fine with it, unlike Russia, which has chosen the path of degradation and decay.
Not only do we have a flawed and archaic economic structure of the late 19th century, but a fundamental lag in technologies at all levels from progressive countries is gradually accumulating, which will be practically impossible to compensate in the foreseeable future without extraordinary decisions and fundamental changes in politics and scientific and technical orientation. But, as you know, there is no and will not be an anti-crisis plan in Russia - the national guards are satisfied with everything, they are not interested in science and technology, all the more so transformations in the economy. This is superimposed on the critical obsolescence of fixed assets, the gradual extinction or retirement of qualified hardening personnel from the USSR, and there are almost no new ones (and those who do appear, many leave the country for places where their talents are used).
China, on the other hand, is simultaneously moving from a non-sovereign export-oriented model under TNCs to creating a highly diversified and developed economy of a new type with its own technologies at all levels, with a new generation of qualified personnel, scientists and geniuses. At the same time, the stage of imitation and copying passes quickly. The Chinese are learning fast and creating their own technology. China is actively working on the domestic market (which is very capacious), nurturing the middle class, in the future they will move on to external expansion and capture sales markets.
It's only in in general terms with a minimum of figures and invoices. China is mesmerizing. This is a real success story. There is a lot of exciting, enchanting data, especially in comparison with other countries. So I will continue soon.
This post is a collection of information about the most powerful economies in the world - the result of a small discussion on Facebook. We needed accurate comparative data on the development of economies in countries on a number of items. The most characteristic position, in my opinion, is GDP per capita. More precisely GDP (gross domestic product) per capita at purchasing power parity (PPP). It is this indicator that is the most accurate characteristic that determines the level of economic development, as well as economic growth.
Latest data collected on Wikipedia laid out in the form of tables, « in the analysis of which it should be taken into account that countries use different so-called systems of national accounts. So the USA, Canada, Ukraine and 28 EU countries presented their data for 2014 in accordance with the new 2008 SNA, other countries, like Russia, are still according to the 1993 SNA, and even then not in full: without taking into account the conditional residential rent and valuation natural resources. The main difference of the 2008 SNA is that it additionally takes into account intellectual property, derivatives financial instruments, spending on research and development and armaments. Thus, the addition of new accounting items leads to a significant increase in macroeconomic indicators (including GDP per capita at PPP), especially for countries with highly developed technologies. This may serve as a justification for additional issuance of cash.”
Despite some differences in the tables, it can be seen that for the most part, the analysis data are almost similar, and the best indicators are not at all for such giants in the production of products and technology development as the USA, Japan, Germany, China, etc. According to this indicator ahead of the rest Qatar, Luxembourg, Macau, Norway, Singapore, Switzerland, etc.
TOP 10 strongest economies in the world
This material is collected according to a different criterion: simply by the total annual volume of the nominal Gross Domestic Product. Whoever has it more, who produced the most various products, that country has a higher position in the ranking. It's that simple.
Providing data on the economies of the countries of the World below, as a very visual representation of their power, I give a simple example in the form of a picture: countries with economies less than just one of the US states - California.
As you can see, this list includes − all countries of the world except USA, China, Germany, England and Japan. Impressive…
Unfortunately, at the time of writing this article, I was able to find comparative data for dozens of the most developed industrial countries, but not later than 2012. It's a pity, but, I believe, my reader will still get a more or less general idea of \u200b\u200bthis information. And we will all be waiting for such information on the Web in the coming years.
Now this site has updated data, which reflects similar information about which those who wish can get acquainted with more recent data.
Interesting, and perhaps very necessary, information about countries with least advanced economy: an article with the title is also available on this site.
The rating of the strongest countries in the world is compiled according to the criterion of nominal GDP, it also takes into account the ever-increasing influence of the East on the economy of the planet. Russia in the top ten states strengthened in ninth position.
1. USA
GDP$15,094,025 Capital Washington Population 313 232 044 people Year of foundation 1776 Territory 9,518,900 km2 (without dependent territories). US economy has held the lead for the past 100 years. Its components are the world's largest banking system And stock Exchange, transnational corporations, highly productive agriculture and leadership in innovative and high-tech industries, in particular computer and telecommunications (Apple, Microsoft). In 1732, Great Britain decided to close hat factories across America - and obliged the colonists to buy expensive hats made in English factories. They say that such dictatorship was one of the causes of the American Revolution and the subsequent economic boom in the country.
Currently, 139 of the world's top 500 companies are headquartered in the US, almost twice as many as any other country. About 60% of the planet's foreign exchange reserves are converted into US dollars and only 24% into euros. The country has deployed one of the most influential financial markets peace.
In the field information technologies The USA is unmatched. So, in the ranking of Business Week magazine, out of 100 IT companies, 75 represent the United States, and in the first twenty there are 17 "Americans", including Apple, Microsoft, IBM, Adobe and others.
According to statistics, during the US Football Championship, the average American spends 10 minutes a day discussing matches during work hours. The damage is more than $800 million.
The first skyscraper in the world appeared in 1885 in Chicago. For 2011, only 4 of the 25 most tall buildings planets are located in the USA
In the US, the children of wealthy parents do not live on their money, but try to build their own careers, relying only on their education and connections acquired during their studies.
GDP$7,298,147 Capital Beijing Population 1 347 374 752 people Year of foundation 1949 (PRC) Territory 9,596,960 km2 China at the beginning of the 21st century is a space and nuclear power that by 2020, according to the plan of the Communist Party of China, should catch up with the United States in terms of total GDP income. Exports provide 80% of China's government foreign exchange earnings. The country leads in the production of more than a hundred types of products, of which the most advanced are automotive and textile. The Chinese economy is the fastest growing in the world; its consistent growth rate is about 10% over the past 30 years. The country is also the largest exporter and second largest importer of goods. China's per capita GDP is $7,544. According to the average estimates of experts, in 8-10 years the absolute figures of China's GDP will catch up and, perhaps, surpass those of the United States.
Provinces in China's coastal regions tend to be more industrialized than those in peripheral regions. By the way, the territories of Hong Kong and Macau are de facto independent and have special status. You need a special permit to visit them.
The national currency is the yuan, which is used to measure the value of Chinese people's money» renminbi (RMB). The yuan exchange rate is set by the state, besides, it cannot be purchased abroad. 1 euro costs about 8 yuan, 1 yuan is a little more than 5 rubles. The Starbucks chain of coffee shops in China is much more famous and stronger in various indicators than the fast food restaurant McDonalds.
China's population in 2012 was over 1.3 billion people. According to average estimates, it will stop growing by 2030, when it will reach 1.465 billion
Annual exhibitions of achievements in the field of high technologies are held in China, the most famous of them is the Canton Fair in Guangzhou (CECF, Canton Fair). It is one of the most important events in the world of production and trade.
3. Japan
GDP$5,869,471 CapitalPopulation 126,400,000 people Year of foundation 660 BC e. Territory 377,944 km2 In terms of GDP and industrial production Japan ranks 3rd after the US and China. High technologies have been developed - electronics and robotics, as well as transport engineering, including automobile, ship and machine tool building. The fishing fleet is 15% of the world. Agriculture is subsidized by the state, but 55% of food is imported. In the three decades since 1960, Japan experienced rapid economic growth as a result of the post-war "economic miracle". On average, its rates were 10% in the 1960s, 5% in the 1970s, and 4% in the 1980s.
Japan has a high degree of economic freedom: the government works closely with the manufacturer, stimulating its development. The main focus is on science and high technology. All this, as well as strict labor discipline, contribute to the rise of the Japanese economy.
A distinctive feature of the country is "keiretsu" - associations of manufacturers, suppliers, distributors around powerful banks, as well as relatively weak international competition in domestic markets. In addition, there are many more social than industrial arrangements: for example, the guarantee of lifetime employment in large companies.
The three main banks in the country - Mitsubishi UFJ Financial Group (MUFG), Mizuho and Sumitomo Mitsui Financial Group (SMFG) - are now overflowing with deposits.
Japan is the world's "robot capital". In terms of the number of industrial robots used, it overtakes even the United States
MUFG alone has 129 trillion yen ($1.6 trillion) in deposits and is the second largest bank in the world. The problem is that MUFG does not yet know how to dispose of this money.
4. Germany
GDP$3,577,031 Capital Berlin Population 81 751 600 people Year of foundation 1990 Territory 357,021 km2 Economy of Germany- the largest in Europe. The engine of foreign trade is industry, which makes up a large share of GDP. Agriculture and energy are also developed: the country is a confident leader in the production of wind and solar generators, information and biotechnologies. Germany is the 2nd exporter in the world: a third of national production goes abroad. Germany has a leading economy in the European Union and is the main creditor for most European countries, including crisis Greece. Most of the country's products are related to technology: these are cars and equipment. The chemical industry is also widely deployed. The largest German companies operating in these industries have branches, research centers and production facilities around the world.
Among them are the famous automotive concerns Volkswagen, BMW, Daimler, the chemical companies Bayer, BASF, Henkel Group, the Siemens conglomerate, the energy companies E.ON and RWE, or the Bosch group. Cities such as Hannover, Frankfurt and Berlin host the largest annual international exhibitions and congresses.
Germany is a leading manufacturer of wind turbines and a major developer of solar energy technologies in the world.
IN late XIX century, Great Britain, in an attempt to protect its market from second-rate imports, obliged German goods to be labeled "Made in Germany".
Now Germany is experiencing a real "boom" of the automotive industry. She owes this to her key market sales to China
However, after a couple of decades, the quality of goods from Germany has improved so much that this marking has become a mark of the highest standard.
5. France
GDP$2,776,324 Capital Paris Population 65 447 374 people Year of foundation 843 (Treaty of Verdun). Territory 674 685 km2 France by total economy occupies a leading position in the EU and consistently enters the top ten in the world. Leading in mechanical engineering, chemical and aerospace industries. In terms of agricultural production, it is ahead of Germany, and in terms of agricultural exports - the United States. The share of wines in exports is traditionally high. A major center of tourism: more than 75 million travelers visit France every year. The French economy is the fifth largest in the world and the second largest in Europe (after its main partner, Germany). The country entered the recession of 2008-2009 later than everyone else and was able to exit earlier than most comparable countries. From January to March 2011, France's GDP growth was more dynamic than expected and amounted to 1%. One of the best performance in Europe!
France is a nuclear power and one of the five permanent members of the UN Security Council, and it is also the most visited country in the world. Paris can be called the tourist capital of the planet, and the Eiffel Tower is the most popular attraction on Earth. These facts automatically make France the champion of world tourism, which makes up a large share of the revenue state budget. By the way, tips here are already included in your bill and amount to 15% of the order amount.
It is the most famous wine producing country in the world. Wine was produced here even during the invasion of the Romans under the leadership of Julius Caesar. According to statistics, 72% of the French have difficulty understanding the numerous wine brands.
Champagne was first produced in France in the 17th century. The drink was immediately nicknamed "devilish" - it blew up the barrels in which it was stored
Only the legendary Bordeaux (Bordeaux) has more than 9,000 varieties! The best liqueurs in the world are also produced in France.
6. Brazil
GDP$2,476,908 Capital Brasilia Population 189 987 291 people Year of foundation 1822 Territory 8,514,877 km2 Brazil has the largest economic potential among Latin American countries and produces a variety of products from petroleum products, steel and consumer goods to computers, cars and aircraft. One of Brazil's main exports is coffee. The country also leads in the production of sugar cane, from which ethanol is produced. Brazil runs one of the fastest growing economies in the world, with its GDP growing at an average rate of over 5% per year. The country still maintains a high level social inequality, inherited by the state since the long colonization by Portugal. However, in last years he went down.
The 1970s were the beginning of the Brazilian "economic miracle". It was at this time that a successful national program was initiated to replace gasoline with more environmentally friendly and cheaper ethanol. Within its framework, the government also obliged the largest automobile concerns to assemble only those models that can run on ethanol.
Now more than a third of GDP is provided by agriculture. The most important fact: Brazilians own 46% of the world market for Arabica coffee - the best coffee. At the same time, this state is the most controversial in Latin America in terms of investment. All large companies tend to be highly monopolized and managed by closed groups with state participation. The country has a number of customs prohibitions on imports, which makes it difficult to buy household appliances.
You can get to Mount Corcovado, where the statue of Christ the Savior stands, by rail - a train with two trailers rushes up the slopes entangled in the jungle
According to Forbes (2011), Brazil ranks eighth in the world in terms of the number of billionaires.
7. UK
GDP$2,417,570 Capital London Population e 62,698,362 people Year of foundation 1801Territory 243,809 km2 Main export items– mechanical engineering, manufactured goods and chemicals. The industrial corporation British Petroleum, which occupies the 2nd place in Europe in the ranking of the largest, allows saving on the import of petroleum products and brings significant profit. The UK is also the world's second largest exporter of white clay, which is used to make porcelain. Many historians tend to believe that if the Great October Revolution had passed Russia, the country would have developed along the path of Great Britain. Today Britain is one of the most globalized countries in the world. London, along with New York, is the world's largest financial center and has the largest GDP among European cities.
plays an important role in the British economy pharmaceutical industry and oil production - the country has oil and gas reserves in the North Sea in the amount of about 250 billion pounds. Britain carries out 10% of world exports of services - banking, insurance, brokerage, advisory, as well as in the field of computer programming. The country is currently ranked 4th in the world (and 1st in Europe) in the World Bank's Ease of Doing Business Index.
The UK National Health Service is the third largest employer in the world after the Chinese Red Army and railway India.
According to a tradition established at the beginning of the 20th century, the birthday of the monarch is celebrated in the UK on one of the Saturdays of June - regardless of the actual date.
Despite the deep integration (including economic) of all the countries of the Kingdom, you will be refused if you wish to pay with Scottish pounds in stores in England, Wales or Northern Ireland. Most Brits don't even know what that money looks like!
8. Italy
GDP$2,198,730 Capital Rome Population 56 995 744 people Year of foundation 1946 Territory 301,340, with islands 309,547 km2. Italy is a global supplier home appliances, one of the leaders in automotive and industrial equipment. Exporter of food products: cheese, pasta, wine, olive oil, fruit and canned vegetables, as well as ready-made clothes and leather shoes. At the same time, Italy has few natural resources and imports most raw materials and more than 80% of energy. After the Second World War, Italy went through a long path of significant economic transformation: starting from a total backlog, it achieved a developed industrial economy. Per capita income was three times less than in the same period in the United States. Almost half of the country (42.2%) was employed in agriculture. Currently, according to the IMF and World Bank, Italy's economy is eighth in the world and fourth in Europe in terms of nominal GDP, and tenth in the world and fifth in Europe in terms of PPP GDP.
Italy is heavily oriented towards foreign trade. Many of her food products are known all over the world. So, legendary Italian wines, cheeses, pizza are exported. Almost all products are marked with a special DOC mark (Denominazione di origine controllata), which is a designation highest quality- this helps the foreign consumer to “weed out” simply similar products (for example, the German Gambozola cheese is an imitation of the Italian Gorgonzola).
Italian fashion houses Versace, Gucci, Prada, Cavalli, Dolce & Gabbana, Armani and others are widely known.
The status of the most expensive car was acquired by the Italian sports car Ferrari 250 GTO of 1962, sold in 2012 for 35 million US dollars.
Motorists are familiar with the names of Italian car brands: Ferrari, Maserati and Lamborghini.
9. Russia
GDP$1,850,401 Capital Moscow. Population 143 030 106 people Year of foundation 862 (beginning of Russian statehood). Territory 17,098,246 km2. Russian economy characterizes a significant dependence on energy prices. According to the data Federal Service state statistics, Russia's exports for 65.9% consists of minerals. The remaining share is made up of metals and precious stones (16.3%), products chemical industry, cars and equipment. Russia is historically rich in intellectual resources. Unfortunately, most of them realize their potential in the West. For example, Max Factor was founded by Maximilian Faktorovich, who opened his first store in Ryazan and emigrated in 1904. It is also worth remembering Google founder Sergey Brin and Daimler engineer Boris Lutsky.
Thanks to economic reforms In the 1990s, most industrial assets were privatized in Russia, with the exception of energy and defense enterprises. The main problem of the country is its heavy dependence on energy resources, in particular oil and gas. Stock market is also on the way of its development and is regarded by many as speculative. By the way, since 2011 Moscow has the highest concentration of billionaires in the world.
According to the calculations of the consulting giant PricewaterhouseCoopers, by 2014 Russia will overtake Germany in terms of GDP and enter the top five countries.
Negotiations on Russia's accession to the WTO began in 1995, the accession itself will take place in September 2012
A large influx of foreign investment and a new stage in the development of the economy, according to experts, should follow in the near future - they are associated with world-class sporting events: the Olympics in Sochi in 2014 and the World Cup in 2018.
10 India
GDP 1,430,020 US$. Capital New Delhi. Population 1 210 193 422 people Founded in 1950 (full independence from the UK). Territory 3,287,590 km2. Economy of India covers all sectors: from agricultural production to industry. 67% of the working-age population is directly dependent on agriculture, which accounts for a third of GDP. India is the largest exporter of tea and has the largest number of cattle in the world. At the same time, the defense, nuclear and space industries are highly developed. In the 17th century, India was the most rich country in the world - before the arrival of the colonialists from Great Britain. The Dutch, Danes, French, Portuguese and other peoples fought for trade privileges here. The country is the birthplace of algebra, trigonometry and chess. Now India is a vibrant and diverse state, its economy is increasingly integrating with the world economy.
The economic reforms carried out in the country since 1990 have far-reaching consequences. General Electric Capital considers this country unique, PepsiCo considers it the fastest growing, and Motorola is confident that India is becoming one of the world's leading powers. Currently, the state is dynamically ascending to the position of the world leader in the IT sector.
One of the main advantages of India is the high qualification and relatively low cost of labor, which is actively used by transnational corporations. Now, in terms of GDP in terms of purchasing power parity, India has taken the 4th place in the world, and in 2050 its volume will overtake the American one.
The monument-mausoleum of the Taj Mahal is a symbol of the tender love of King Shah Jahan for his wife, the beautiful Mumtaz Mahal
Despite rapid economic growth, India continues to face problems of social inequality and high unemployment.
Text Dmitry Zolotavin, financial consultant of A-Club in Tyumen, Alfa-Bank
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