Chinese GDP Rises By 8.7% in 2009; Almost 10% More Than The Year 2008

China’s economy has shown a marked increase in the increase in its GDP. The economy expanded by 8.7% in 2009. This increase comes even as the world economy collapsed under the pressure of global financial crisis. This increase is 10% more in comparison to the same time last year.

Japan’s GDP figures will be out next month. Analysts are of the opinion that the Japanese economy may contract by 6% in 2009. The growth in the Chinese economy makes it the second biggest economy and a tough competition to Japan. Experts are of the view that the huge increase in the GDP could be fuelled by the “smart policy stimulus” the Chinese government provided at the wake of the financial meltdown.

The aggressive fiscal policy that enabled domestic demand and replaced exports increased China’s importance at the same time decreasing the importance of US. This domestic driven economy has established itself in the world economy directly or indirectly affecting many nations. However, the stimulus provided by the Chinese government may inflate the economy when it withdraws it once the economy recovers. According to the UN standards, on an average this GDP growth may still be $1 per day, considering the poverty in China.