The paper “ Comparative Characteristic of the Demographic and Economic Factors of Germany and China" is an informative example of a statistics project on macro & microeconomics. The real GDP growth rate in China in 2012 was 7.8%, which decreased from 9.2% in 2011. The real GDP growth rate in Germany in 2012 was 0.9%, which decreased from 3.1% in 2011 (Index Mundi, 2013). b. Primary Industries: The industrial production growth rate in Germany in 2011 was 8%. Germany is the most advanced producer of iron, cement, vehicles, machinery, steel, and coal.
In 2012, Germany highest GDP growth was seen in the Services sector 73.8%, while the industrial growth was 24.6% and the agriculture sector grew only by 1.6% (CIA, 2013). In 2011, China’ s industrial production growth rate was 13.9 %. China’ s primary industries are steel, iron, aluminum, fertilizers, chemicals, food, petroleum, textile, and machinery. In 2012 the highest sector-wise GDP growth in China was seen in the agriculture sector that is 36.7% than the services sector grows by 34.6 and industrial growth was 28.7% (CIA, 2013). 2. The pace of change a.
Structural impediment (i. e. fiscal and regulatory) China needs to focus on human well being, environmental factors, energy resources and increasing inflation in their policies. (Forbes, 2013) Germany needs to stabilize its economy by growing its GDP, labor force decrease, tax collection decrease, demographic and health problem in Germany are a really serious issue (Roubini, 2013)3. Quality of labor a. AgeThe median age of people in China is 35.9 years and the median age of males is 35.2 years and for females, it is 36.6 years. In China, 46.5% of the population is between the age of 25-54 years (319,710,444 males and 305,378,723 females).
10.9% of the population is between 55-64 years (74,447,204 males and72, 451,831 females), which shows that China has more youth in their labor (CIA, 2013). The median age of people in Germany is 45.3 years and the median age of males is 44.2 years and for females, it is 46.3 years. In Germany, 42.2% of the population is between the age of 25-54 years (17,397,266 male and 16,893,585 female). 13% of the population is between 55-64 years (5,236,617 male and 5,354,262 female), which shows that Germany has more youth in their labor (CIA, 2013). b.
Education According to 2008 estimates, in China 47.10 % of the labor force with primary education and 44.3% of labor with secondary education (Index Mundi, 2013). According to 2010 estimates, in Germany 14.9 % of the labor force with primary education and 58.50% of labor with secondary education (Index Mundi, 2013). c. Quantity According to 2011 estimates, the Labor force in China is 795.4 million (Index Mundi, 2013). According to 2011 estimates, the Labor force in Germany is 44.01 million (Index Mundi, 2013).
B. Current Business cycle position1. Estimates of long term growth potentialThe estimated GDP growth of Germany in 2015 is $3,441.50 billion which is far less than China $16,670.126 Billion (IMF, 2011). 2. Elements necessary to improve output Elements to improve output are to increase GDP, lower the inflation rate, and improve infrastructure, increase in-country resources, and increase in labor productivity. C. Balance of payments The current account balance of payment of China in 2011 is $201.7 billion (Index Mundi, 2013).
The current account balance of payment of Germany in 2011 is $188.6 billion (Index Mundi, 2013). D. Foreign reserves According to 2011 estimates, foreign exchange reserves of China are $3.236 trillion (Index Mundi, 2013). According to 2011 estimates, foreign exchange reserves of Germany are $238.9 billion (Index Mundi, 2013). 1. Currency value $1 is equal to 6.21 Chinese Yuan. $1 is equal to 1.29 Euro. 2. Government bond yields According to 2012 estimates government bond yield of China is 3.63% (Trading Economy, 2013). According to 2012 estimates government bond yield of Germany is 1.47% (Trading Economy, 2013).
E. Population growth / Standard of living The population growth rate in China is 0.481%. The population growth rate in Germany is -0.2%. According to 2010 estimates, the standard of living in Germany is high 81% as compared to China that is 56% (International Living, 2013). F. Cost of labor Hourly Labor cost in China is $1.36 and hourly labor cost in Germany is $45.77 (Bureau of labor statistics, 2013). G. Expected inflation Expected inflation rate in China is 3.2% while the expected inflation rate in Germany is 1.5%. 1.Cost of living Cost of living in China is 63% while the cost of living in Germany is 54% (International Living, 2013).
2. Real wages with respect to inflationThe real wage rate of China is 42452.00 Chinese Yuan while in Germany 110 Euro (Trading Economy, 2013). H. Measurement of price changes outside of CPI or equivalent a. Food CPI for food in China has increased by 2% and CPI for food whereas in Germany it has decreased by -1.3% (National Bureau Of Statistics China, 2013; Destatis, 2013). b.
Energy CPI for energy in China is increased by 3% and CPI for energy in Germany is increasing by 0.4%. c. Housing CPI for housing in China is increasing by 2.9% and CPI for housing in Germany is increasing by 0.4% (National Bureau Of Statistics China, 2013; Destatis, 2013).