China Major Growth Driver in BRICS Nations
BRICS as a group has evolved as important Bloc in the world. As the BRICS nations have distinguished from other emerging markets by their economic and demographic potential to rank among the world’s largest and most influential economies in the 21st Century. China and India are the major contributors of the growth not only in the BRICS group but also in the World. Over the past two decades the trend has been clearly suggesting the rise of the two countries as growth engines. Throughout the article we will try and understand the major factors that contributed to the growth of the China in comparison to BRIC nations. And also we will analyse the current challenges ahead for both China. Whether China will be able to hold up this momentum in future is most difficult question to be answered. Even though many World organisations are ranking China as the leading Economic power of world and India among top 3 most developed nations of the world by 2050.
GDP of the BRICS nations is on the rise when looked over the past two decades clearly suggests that the GDP growth in absolute terms is on the rise. The chart below has been generated by converting the local Currencies in to Current US Dollars. (Ignoring the Currency changes for easy comparison)
GDP Growth rate of China has been on the top throughout the two decades and it has sustained the growth consistently. Let us look at the Factors responsible for the Growth of China Beginning with China the main Factors responsible for the China’s Growth are High Productivity of Labour and 2. Investments of both by the Government and Private Sector. The export and manufacturing sectors are key drivers of China's economy.
The Workforce of china has been very productive and according to Study done by one of reputed Management Institute it was that China’s Labour force was 18% more productive than American labour force. It was also found that there is still more scope for...
Please join StudyMode to read the full document