While the United States and European Union bemoan their growth rates since the great recession, the world economy is actually thriving. Or, to be more specific, China is thriving so much that it’s single handedly shaping global economic trends.
On Wednesday, Business Spectator‘s Adam Carr demonstrated in his piece, “Two charts that show the world economy is thriving,” that indeed, the global economy is in pretty good shape.
First, he shows how global output has gone up greatly since 1960 and has increased significantly since the 2008 global recession.
This chart looks very similar to a graph of China’s economic growth in percentages over the same period of time – and quite dissimilar from BRICS countries India, Brazil, and South Africa, start-up nation Israel, and the U.K. and U.S.
Carr also notes that global unemployment is generally falling and quite low.
Similarly, Carr’s chart reminds us of another graph: China’s year-to-year unemployment rates over the same period.
The main distinction is that China’s unemployment rates in the early ’90s and late 2000s were lower than four per cent, whereas global unemployment averages fluctuated between 6.35 per cent and 5.4 per cent during the same time.
When comparing China’s total GDP per capita to the same countries we charted earlier, however, China is still not quite there.
But China’s GDP may get there sooner than we expect. At TED India in 2009, Statistics guru Hans Rosling used global historical data since 1858 to predict that China’s per person income will reach the United States by July 27, 2048 – that’s in less than 35 years.
China is not only the core of the global economy, but at its current rate is prone to be running the world by 2050. The West’s days as global superpowers are in all possibility coming to an end. The ramifications of such a geopolitical shift would be enormous, with sweeping impact on all areas of life; from economics to politics, and even the environment. How’s your Mandarin coming along?