The world's largest economy
Photo: ffog.net
The decade (2000-2010) has been marked by China's relentless rise from largely insignificant player in the global economy to the most prominent driver of the world economy. In the year 2000, China was the world's sixth largest economy behind the U.S., Japan, Germany, France, Britain and Italy. Today China is the world's second largest economy after the United States, with a GDP of $5 trillion compared to $14 trillion for the U.S. and is set to outpace America as the world's largest economy before the end of this decade. While the U.S. economy is facing anemic growth (barely 2%), the Chinese economy is growing by more than 10% a year. Already, China has overtaken America as the world's biggest trading nation. China is now the biggest exporter of goods to America with a trade surplus of more than $200 billion in China's favour. China is also bankrolling America's budget deficits. With growing incomes of the Chinese consumers, China is now less dependent on the U.S. market while America is looking forward to China as a market for its products. The Chinese economy is pulling the European nations out of recession. Because of growing demands from the booming China for German cars and machineries, the German economy is growing again. Last year, Germany's biggest automaker, Volkswagen, sold more cars in China than it sold in Germany. France's export to China grew by 14% after the recession hit the globe in 2009. The New Year may see yet another spectacular rise in the Chinese economy. The 21st century belongs to China.
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