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China GDP: how it has changed since 1980

China, the second-biggest economy in the world, has announced a cut to it's growth rate for 2012. See how China's GDP has changed since 1980 • Get the data • Explore the China over time interactive

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China, the world's second-biggest economy, has cut it's growth rate for 2012 to the lowest rate since 2004. Photograph: Reuters

When China cut it's growth rate for 2012 down to 7.5%, it's lowest rate since 2004, it signalled a move towards a rebalancing of the world's second-biggest economy. The premier of the Republic of China, Wen Jiabao announced the cut during the deliverance of the annual work report at the opening of the National People's Congress. Tania Branigan writes: The target of 7.5% for 2012 reflects expectations that reduced exports due to the European crisis and a fragile US recovery could dampen growth in the world's second-largest economy. But by abandoning the longstanding 8% goal the government is also signalling its desire to reshape development. "In setting a slightly lower GDP growth rate, we hope ... to guide people in all sectors to focus their work on accelerating the transformation of the pattern of economic development and making economic development more sustainable and efficient," Wen said. So how does China's economy look? We've pulled together some key indicators from the World Bank and the International Monetary Fund

adding further to the belief by some that it is inaccurate and unreliable. by looking at GDP at purchasing power parity . with widespread doubts about its accuracy. the average annual real GDP growth rate in China was estimated at 5. Gross Domestic Product (GDP) China's GDP is controversial.6% compared to 14. not least because it's measured differently to other some countries.so therefore it's seen as not being a reliable measure of China's output in relation to other countries worldwide.030.3% (from 1960-1978) according to the Congressional Research Service. in the case of China.(IMF) to examine how the country is getting on.015.2% during the previous year.0Real GDP growth.which takes into account the amount of money needed to buy the same goods and services in two different countries and then calculates an implied foreign exchange rate.015.4%. annual % Before the Chinese government introduced several economic growth reforms in 1979.it's established by government regulation and not determined by market forces . %0500100015002000-30. World Bank cuts China growth forecast . A Wikileaks US Embassy cable revealed that Liaoning Party Secretary Li Keqiang had called the GDP measure "man made".3tn for 2011." According to the CIA World Factbook comparisons of output across countries is best judged. As the chart above shows there have been some steep inclines and drops in China's GDP growth rate with the effect of the global recession showing in 2008 when the annual rate dropped to 9. The IMF estimated China's GDP at purchasing power parity at $11.00. Tom Orlik wrote in The Wall Street Journal: "China's GDP data is haunted by controversy. As author of Understanding China's Economic Indicators. The problem lies with the official exchange rate . We have also used data from the Congressional Research Service and the CIA World Factbook Annual GDP growth China's annual real GDP growth. In 2010 the annual growth rate stood at 10.

Continue reading the main story . analysts have said that the shift in its growth model may see China's growth rate slow in the shortterm. prompting concerns whether China can sustain its high growth rate. It also cut the forecast for global economic growth to 2.4%. While Beijing has been keen to boost domestic consumption. the world's second-largest economy. Over the past few decades China has relied heavily on exports and governmentled investment to boost its economy. a slowdown in key markets such as the US and Europe has seen a decline in demand for Chinese exports.There have been concerns whether China can sustain its high growth rate amid a global slowdown Continue reading the main story Related Stories    German economic growth forecasts cut ECB cuts eurozone forecast OECD cuts eurozone growth forecasts The World Bank has cut its growth forecast for China amid warnings of slower but more stable global growth over the coming months. had slowed as policymakers look to rebalance its growth model. 'Main risk' The World Bank's cut to China's outlook comes just six months after it raised its forecast for the Chinese economy. The bank said growth in China.7% in 2013.4%. The bank now expects the China to grow 7. However. There have been calls for China to take measures to boost domestic demand to offset the decline in exports and rebalance its economy. down from its earlier projection of 8.2% from 2.

” Kaushik BasuWorld Bank In a report released in December last year. have slowed more recently. provoking a disorderly unwinding and sharp economic slowdown. despite improvements in financial conditions. "The main risk related to China remains the possibility that high investment rates prove unsustainable. the bank said that stimulus measures and approval of infrastructure projects would help boost China's growth." said Kaushik Basu. the slowdown in the real economy is turning out to be unusually protracted. and raised it forecast for 2013 to 8." it warned. .4% from 8. the servicing of existing loans could become problematic . in its latest report. chief economist at the World Bank." China's 10 percent per annum economic growth can be sustained and will not "suddenly slow down".1% That was after Beijing had approved infrastructure projects worth more than $150bn (£94bn). the World Bank said growth remained subdued in high income countries. It further added that "should investments prove unprofitable. with unemployment in the eurozone actually rising. said Fan Gang.While there are markers of hope in the financial sector. the slowdown in the real economy is turning out to be unusually protracted. which have seen robust growth rates in the past few years. It added that growth in emerging economies such as Brazil and India. "This is reflected in the stubbornly high unemployment in industrialised nations. 'Unusually protracted' Globally. and in the slowing growth in emerging economies. a renowned economist and member of the central bank's Monetary Policy Committee.potentially sparking a sharp uptick in non-performing loans that could require state intervention". especially in Europe. It said any pick-up in growth of developing countries was likely to "modest". However. the bank raised concerns over China's investmentled growth model. "While there are markers of hope in the financial sector.

More macro control to avoid overheating The second is the fact that China has opened up to the outside world." he said. according to Fan. 27 million workers laid off from SOEs have found jobs in the private sector. Fan said the final factor was urbanization which proved to be a vital driver of market demand and produced massive investments in infrastructure."Although China's economy faces a number of challenges and risks. "The effect will emerge over time. Fan said that as long as China pursues social and economic reforms. . the high growth rate is bolstered by four important factors. but it is definitely a strong stimulant to China's growth. Related readings: Economy to sustain fast growth for 2 more decades World Bank raises China growth forecast to 10. According to Fan." he said. "One important reform is the privatization of Stateowned enterprises (SOEs). Over the past 10 years. China's urbanization drive aims to turn 45 percent of the rural population into urban residents. its economy will keep growing rapidly.4% Figures indicate risk of overheated economy The first factor is China's reforms. the central government has invested a huge amount of capital and human resources in developing education and technology." Fan said at a forum in North China's Tianjin Municipality. welcoming all kinds of foreign investments and gradually opening its banking sector. The third factor is education and technology support.