China's Economic Growth

Question 1

Real GDP growth

Answer 1

Has been over 9% a year but is now slowing

Question 2

Government set growth rate

Answer 2

7%

Question 3

What has much of the growth in China over the last 20 years come from

Answer 3

Very high rates of investment and strong exports leading to a rising trade surplus

Question 4

Estimates find that out of the growth achieved by China over the last twenty-five years:

Answer 4

• 60-70% from increasing capital and labour inputs

- 30-40% from rising factor productivity

Question 5

Economic reform challenges facing China

Answer 5

• more reliance on domestic markets
• raise consumption
• grow the private sector
• increase innovation
• integrate the Chinese economy into the global economic/financial system