China's economy grew 3 times faster than the US

[definitelynotIndian]

GBP here we come to replace you very soon

GBP?

 

[BetterPakistan]

@Shotgunner51 So when you guys are overtaking US in real GDP terms? at 2020? i still remember those indians claiming to become the bigest country in terms of real GDP till 2020

 

[ahojunk]

GBP?

GBP - Great Britain Pound.

 

[Shotgunner51]

@Shotgunner51 So when you guys are overtaking US in real GDP terms? at 2020?

Based on data readily on hand (2014 data), by running a simple numerical projection on comparing nominal GDP (see definition as below, not Real GDP which requires factoring of other elements), China will surpass that of US in 9~10 years. Again based on these data, I would not be optimistic about China surpassing US by 2020.

Gross domestic product - Wikipedia, the free encyclopedia
List of countries by GDP (nominal) - Wikipedia, the free encyclopedia
What's the Difference Between Nominal and Real?​

However if you think outside the box, the picture could be quite different. One important question is the whether the dollar continues to enjoy its current hegemonic status since induction of the Bretton Woods system. So I don't know what would be the outcome, though we know what we should do now and we are doing it.

Bretton Woods system - Wikipedia, the free encyclopedia​

i still remember those indians claiming to become the bigest country in terms of real GDP till 2020

Yeah I share their optimism.

 

[BetterPakistan]

Based on data readily on hand (2014 data), by running a simple numerical projection on comparing nominal GDP (see definition as below, not Real GDP which requires factoring of other elements), China will surpass that of US in 9~10 years. Again based on these data, I would not be optimistic about China surpassing US by 2020.

Gross domestic product - Wikipedia, the free encyclopedia
List of countries by GDP (nominal) - Wikipedia, the free encyclopedia
What's the Difference Between Nominal and Real?​

However if you think outside the box, the picture could be quite different. One important question is the whether the dollar continues to enjoy its current hegemonic status since induction of the Bretton Woods system. So I don't know what would be the outcome, though we know what we should do now and we are doing it.

Bretton Woods system - Wikipedia, the free encyclopedia​

Yeah I share their optimism.

Let's hope for the best.

 

[Shotgunner51]

Let's hope for the best.

Hope the best for Pakistan too.

On top of hope, pragmatism is everything, let's do it.

 

[opruh]

China just keeps on winning

 

[Christopher_ZJ]

New comer

 

[ChineseTiger1986]

China's 2015 nominal GDP would be around 13.5 trillion if we apply the SNA 2008 standard like the US.

 

[Genesis]

China's 2015 nominal GDP would be around 13.5 trillion if we apply the SNA 2008 standard like the US.

couldn't have come at a better time, what with our mutual friend North of Pakistan getting a bit too full of themselves.

 

[Edison Chen]

This year, in total 8 provinces reached GDP $10,000 per capital.

 

[VelocuR]

Great progress!

How come President's low salary only $22,000 per year? Is that correct?

China's president makes ... $22,000 a year?! - Yahoo Finance

 

[Bussard Ramjet]

China's 2015 nominal GDP would be around 13.5 trillion if we apply the SNA 2008 standard like the US.

China just come its RRR by 50 basis points. There is quite some possibility of monetary easing in the economy. Though the GDP in real terms will obviously grow after revaluation, it's quite likely that in nominal terms, China can fall below 10 trillion, if China initiates a QE. This QE coupled with the strengthening Dollar.

 

[Edison Chen]

It's estimated that Shenzhen 2014 GDP will have surpassed Seoul.

Shenzhen: $258 billion, population: 10,62 million
Seoul: $240 billion, population: 10,46 million

The GDP of Guangdong will exceed South Korea next year. Soon will be Jiangsu or Shandong provinces.

China just come its RRR by 50 basis points. There is quite some possibility of monetary easing in the economy. Though the GDP in real terms will obviously grow after revaluation, it's quite likely that in nominal terms, China can fall below 10 trillion, if China initiates a QE. This QE coupled with the strengthening Dollar.

To rural commercial banks, PBOC allows another 0.5% reduction of RRR. To Agricultural Development Bank of China, the reduction is more than 4%. China is supporting SMEs from rural regions and big projects like water conservancy project in these regions at full blast.

 

[TaiShang]

China's RRR cut not start of strong stimulus
February 5, 2015

The universal reserve requirement ratio (RRR) cut starting on Thursday is not the start of a strong stimulus for the economy, a senior official of China's central bank told Xinhua on Thursday.

The cut was an ordinary policy operation by the People's Bank of China (PBOC) based on liquidity conditions and the economic situation, Lu Lei, head of the PBOC's research department, said in an interview.

The central bank on Wednesday decided to lower the RRR, the minimum level of reserves banks must hold, by 50 basis points from Feb. 5, the first universal RRR cut since May 2012.

The upcoming Spring Festival is a factor, as funding shortages occur every year around this time in China due to strong cash demand. Taking the current position of foreign exchange reserves into account, open market operations alone are not adequate to fill the funding gap, he added.

Lu denied that the RRR cut represented a policy shift: The central bank conducts operations by sticking to the principle of a balance between tight and loose, in line with economic indicators, Lu said.

The PBOC also increased support to targeted areas, cutting the RRR by an extra 50 basis points for qualified banks lending to small firms, the farming sector and major water projects.

Lu noted that the targeted RRR cut reflects the government's desire to restructure the economy.

The move comes days after the purchasing managers' index, a gauge of manufacturing activity, fell below 50 for the first time since October 2012, a sign of a weakening economy. The world's second largest economy grew at the slowest rate for 24 years in 2014.

China's producer price index (PPI) has been declining for 34 months in a row, indicating enormous pressure on the real economy, especially on small businesses, Lu noted.

The structural RRR cut is meant to guide more financial resources to the most demanding sectors in the real economy. The central bank cut benchmark interest rates for the first time in more than two years in November 2014.

As to whether the liquidity released by the moves has flowed into the real economy, Lu said a study by the central bank showed that the weighted average interest rates of renminbi loans had dropped significantly from the second quarter of 2014 to the fourth.

The research chief admitted that small firms suffer higher financing cost than large ones, not an exclusively Chinese phenomenon. Lu wants more reform to encourage private companies to enter the financial sector and a multi-tier financial market promoted.

As to whether the new liquidity has hit the stock market as many experts supposed, Lu said the financial market normally reacts faster than the real economy and the real effect on the real economy takes a longer time to show.