China becoming the largest economy

China becoming the largest economy

currently being edited by Syuen

Description:

Over the next 50 years, Brazil, Russia, India and China—the BRICs economies—could become a much larger force in the world economy. Goldman Sachs has predicted that China will become the largest economy in 2041, closely followed by the US and India

Enablers:

1. Stable Macro Environment

2. Strong and Stable political institutions

3. Openess to trade and foreign direct investments

4. High levels of education

Inhibitors:

1. Unstable political environment, minority issues

2. Unhealthy financial institutions (Not commercial driven)

3. Working population decreasing (one child policy)

Paradigms:

1. Change of world power when China becomes the biggest economy

2. Increase need of more energy

3. Renminbi becoming the main currency instead of USD (change the oil barrel per price)

Timing:

2007: China's economy overtook Germany's economy, becoming the third largest economy

2015: China's economy will be bigger than Japan, becoming the second largest economy

2041: China's economy will be bigger than US, becoming the largest economy

Web Resources:

1. http://www2.goldmansachs.com/ideas/brics/book/99-dreaming.pdf

2. http://www.bloomberg.com/apps/news?pid=20601110&sid=a9P1peF6QeOg