China’s Economic Growth By: Martine Dulcine Katiuska Perez Katiuska Perez Preston Roth Preston Roth

China’s Past Economic Growth  Economic Reform began in the 1970s  Some Reforms included: - Gradual Liberalization of Prices - Gradual Liberalization of Prices -The Opening to Foreign Trade and Investment -The Opening to Foreign Trade and Investment -Fiscal Decentralization -Fiscal Decentralization

Current Trends in Economic Growth  China has become the 2 nd largest economy in the world  GDP Growth in 2005 hardly slowed  Consumer Spending increased  Although Exports decreased in 2005, still remain high

Present Time  China Still 2 nd to USA in GDP  Small Percentage of U.S. GDP

Effects of China’s Rapid Growth  Shortage of space to expand  China is the 2 nd highest producers of Carbon Dioxide  Not enough power plant to support their growth  Water shortage / water contamination

What Might Slow Down China’s Rapid Growth?  Undervalued currency  Nonperforming bank loans  Inefficient state-owned enterprises  Rural-Urban income Gap

Causes of the Rural-Urban Income Gap  Government programs designed to help Urban families  The government buys more than 50% of the grain sold by the farm below market price

Future of Economic Growth in China

Future Projections  Urbanization rate  Small-medium sized enterprises

Forecast of the GDP