GDP Growth Receives a Boost from Beijing

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In a restatement of GDP growth, following a national census, China is now claiming to be the sixth largest economy (up from seventh). It may leapfrog to the number four position after publication of the 2005 figures. Reports indicate that the GDP has been raised by US$285 billion, or about 17 per cent with much of the growth coming from previously unreported activity in the private economy, and especially in the service sector.

It is expected that services will be shown to account for as much as 40 percent of GDP, compared with 1994s official level of 33 percent, and that consumption may be as high as 60 percent of GDP. The figures indicate a reduced reliance on investments and exports as drivers for growth, and also reflect the spending power of the Chinese consumer something that will make the Chinese government, and many international businesses, very happy.

See related news:

    China Jumps to World’s 6th Largest Economy with Revised 2004 GDP …
    Voice of America – USA
    … With these revised gross domestic product numbers, China has supplanted Italy as the world’s 6th largest economy and is climbing rapidly. …

    Great leap forward in China’s GDP
    New Zealand Herald – New Zealand
    BEIJING – China is likely to declare itself the world’s fourth largest economy next week, leapfrogging Italy, France and Britain, helped by a likely huge …

    China’s Even Heftier Economy
    MSNBC – USA
    Everybody knows China is big. … The revision means China’s output actually totals $1.74 trillion, about $300 billion more than previously thought. …

(Updated 21/12/2005)

3 Responses to “GDP Growth Receives a Boost from Beijing”

  1. Archive » Non-Performing Accountants (and Loans)| China Business Blog Says:

    […] to take the stage. In a move worthy of Beijing’s re-statement of GDP growth last year (see here), Forbes reports that the accounting firm “has withdrawn a report that was criticized […]

  2. Archive » The GDP Guessing Game| China Business Blog Says:

    […] xports and domestic demand. In any event, the predictions do not often match the reality (which may itself be revised from time to time). As China Daily points out: “Though the count […]

  3. Archive » Restated Statistics: GDP| China Business Blog Says:

    […] not for the first (or last) time, official figures are being revised. This time it is GDP (again). Forbes reports: “China’s National Bureau of Statistics said it has revised up […]

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