Both American and China are always in the news for one reason or another but the most importance news stories for the rest of the world are regarding their economies. In recent weeks it has been reported that the Chinese economy is going through a somewhat stagnant period and while this was always going to happen we really don’t want it to remain true for too long.
China and America are both drivers of the global economy and as shown in 2008 if one of these countries falters the effect on the rest of the world can be extremely detrimental.
For those of you reading this who have no idea about the American or Chinese economy, do carry on reading because I will provide a basic insight into how they work and the impact of them globally.
It is important nowadays to be economically aware and to have an opinion, even if it doesn’t practically effect you it will at least make listening to the news or reading the paper a little easier.
The Chinese economy is undeniably strong but in the past month there have been reports of a slight stagnation. The economy is focused on industry and a country that has been consistently expanding in recent years can sometimes plateau and in effect “find itself”. You can’t honestly expect any economy to continue expanding unrelentingly but the Chinese economy was becoming an exception.
That said, despite this stagnation the economy is still forecast to continue expanding and progressing this year and that is because of the sheer efficiency of the infrastructure in China. China as a country is extremely well organized and economic growth is centred on the countries key industry sectors which also have the most potential for future growth too.
I’m sure if you asked investment bosses such as Brett Lankaster about the Chinese economy he wouldn’t have any worries for its future.
America is the world economy driver. There are many reasons why America is so dominant but it is mainly because of the sheer size of the country. So many states make up the American economy and that is pretty much the reason why there is so much room for prosperity and disparity also.
The economy in recent months has been rather uncertain, in light of the republican dominated congress, making any economic measures from Obama tough to pass.
It is pretty tough to compare both economies, I would have to say the Chinese economy is more trustworthy than the American economy simply because of the infrastructure in China compared to the disjointed political system of America. Both China and America need to work together if they are to keep the world economy moving forward, cordial relations are essential and must be maintained at all costs.
The economy is all about give and take and strong assessment of the internal factors that are driving that particular economy. Both China and America still haven’t reached their potential economically and as technology improves as will their economies.
James Dickinson is an author with a degree in economics. There are so many countries out there with economic potential and James likes to write about them.