Blog
Unit 2 Macro: Focus on China - Per Capita Incomes
26th January 2012
Per capita incomes in China are rising though still low by advanced-nation levels. China ranks at 119 in terms of average incomes, according to World Bank data (per capita incomes, PPP adjusted). But China is now the biggest car market in the world and there has been a huge rise in the sales of luxury goods to China (these products have a strong income elasticity of demand).
China wants to achieve a re-balancing of her growth – towards domestic consumption and away from exports. Another key aim of the plans for the next 5 years is a surge in market-driven entrepreneurial activity. Plus a continued shift towards higher-value, high-knowledge manufactured products.
GDP per capita
Data from Timetric.
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GDP per capita, PPP (constant 2005 international $), China from Timetric
GDP per capita based on purchasing power parity (PPP). An international dollar has the same purchasing power over GDP as the U.S. dollar has in the United States. GDP at purchaser’s prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in constant 2005 international dollars.
Household final consumption expenditure (% of GDP) in China
Data from Timetric.
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Household final consumption expenditure, etc. (% of GDP), China from Timetric
Annual rate of growth of real household consumption per capita in China
Data from Timetric.
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Household final consumption expenditure per capita (constant 2000… from Timetric
Passenger cars per 1000 people in China
Data from Timetric.
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Passenger cars (per 1,000 people), China from Timetric
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.