The growth of China 2008 to 2013 impact on the U.S. economy Research Paper

The growth of China 2008 to 2013 impact on the U.S. economy - Research Paper Example With the main aim of ensuring recovery after the recession of 2008, the country has managed to record tremendous growth, particularly in the gross domestic product (GDP), which is used by its leaders in the benchmarking of the economy’s performance. In this study, I seek to address the concept of economic growth in China from a macroeconomic point of view, and how the same impacts on the US economy from a macroeconomic point of view (Chuang & Thomas, 2010; Morrison, 2013). The economy of China has been considered as one of the fastest growing economies in the world taking into consideration its real annual gross domestic product (GDP) that has averagely grown to 10% in the year 2013. As such, China is regarded as a main global power in trade. The other economic achievements in China that make its economy to be growing faster is that fact that it is the largest manufacturer, the largest trading economy, the second-largest foreign direct investment (FDI) destination and the only country holding the largest number of foreign exchange reserves (Calhoun & Derluguian, 2011). Within a span of only three decades beginning the year 1979, the rapidness in the economic rise of China can be considered as one of the major and the greatest success stories economically. However, this rating cannot be merited to that of the U.S.A considering that it has a lower per capita value as compared to the US (Gordon, 2008). However, in the year 2008, China’s economic growth was adversely affected by the recession considering that significant declines were noted in its exports, FDI inflows and imports. Consequently, there was a slowed growth in the country’s GDP and a large number of the working population lost their jobs through forced retrenchments and early retirements. From the angle of macroeconomics, it can be said that the recession affected households, businesses and the public