CHINA

Impact of China's Growth on Unemployment in Europe & USA

Introduction3

Overview of the Economy of China4

Historical Background4

Challenges5

Poverty Alleviation5

Other Challenges6

Dependency of China's Growth on Exports6

Unemployment in European Union (EU)8

Unemployment in United States (US)9

Conclusion10

Bibliography12

Appendix14

Figure 114

Exports of goods and services (% of GDP) 114

Figure 216

Table 116

lewis model 118

debt overview in Europe 118

debt overview in Europe 219

Impact of China's Growth on Unemployment in Europe & USA

Introduction

The economy of the world is moving with a slower pace. According to a publication of United Nations the forecasted aggregate growth rate of the economy of the world will be 2.4% and 3.2% in 2013 and 2014 respectively. This slow speed of growth is telling the world a true story where the big nations have been striving under recession; China is the one which has been pushing and dragging the global economy. The big fish have been yelling in great despair for this set back situation and economical displeasing situation. The major focus of this woe is developing countries. European Union and United States are also among these afflicted economies. China, even though; has been able to attain a double digit figure of GDP growth; still lies under the notion of developing countries. The developed economies also engulfed the growth of China in argument for the current world economic condition where they are facing high level of fluctuated prices, decreased level of exports and increased level of unemployment.

The facts for such reasoning are important to consider on over all level. China is not devoid of ill market condition of the world and also as been facing so much internal challenges. The problem of low demand also exists in China because of the sector wise division of the economy and an increasing rate of other problems which will be discussed under the head of challenges in the later part of this essay. For the better understanding of the role of the economy of China and its impact on unemployment and other issues; it is utmost important to study the pros and cons and the behaviour of the economy of China, the challenges and the development of the different sectors.

Overview of the Economy of China

The economy of the People's Republic of China emerges on the map of the economy of the world as the second largest economy. The world witnessed this history when in spite of standing among the most populous countries of the world; China distinguished itself. The transformation from centrally planned economy to the market based economy has not only changed the economic position of China in the world but also enhanced the standards of living of the people of China.

As per the recent establishment of the records by the World Bank; China has 10% average growth rate of GDP. 10% GDP growth rate is a remarkable and a phenomenal achievement of China. China with this significant growth has uplifted the lives of it's above than 600 million people from the trap of poverty. The milestones of MDG (Millennium Development Goal) are within ...