Comparative Characteristic of the Demographic and Economic Factors of Germany and China – Statistics Project Example

Economic Analysis Economic Analysis A. Economic System Growth rate: a. Productivity: Real GDP growth rate of China in 2012 was 7.8%, which decreased from 9.2% in 2011. Real GDP growth rate of Germany in 2012 was 0.9%, which decreased from 3.1% in 2011 (Index Mundi, 2013).
b. Primary Industries:
Industrial production growth rate of 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 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 services sector grow by 34.6 and industrial growth was 28.7% (CIA, 2013).
2. 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 their economy by growing their GDP, labor force decrease, tax collection decrease, demographic and health problem in Germany are really serious issue (Roubini, 2013)
3. Quality of labor
a. Age
The 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 the china have 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 the Germany have 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, Labor force in China is 795.4 million (Index Mundi, 2013).
According to 2011 estimates, Labor force in Germany is 44.01 million (Index Mundi, 2013).
B. Current Business cycle position
1. Estimates of long term growth potential
Estimated GDP growth of Germany in 2015 is $3,441.50 billion which is far less then 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
Population growth rate of China is 0.481%.
Population growth rate of Germany is -0.2%.
According to 2010 estimates, 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 inflation
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 increase by 0.4%.
c. Housing
CPI for housing in China is increase by 2.9% and CPI for housing in Germany is increase by 0.4% (National Bureau Of Statistics China, 2013; Destatis, 2013).
Reference List
Bureau of labor statistics. (2013). Labor . Retrieved from Bureau of labor statistics: http://www.bls.gov/fls/china.htm
CIA. (2013). The worl factbook Germany. Retrieved from Central Intelligence Agency: https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html
CIA. (2013). The world factbook China. Retrieved from CentralIntelligence Agency: https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
Destatis. (2013). CPI. Retrieved from Destatis: https://www.destatis.de/EN/PressServices/Press/pr/2010/01/PE10_013_611.html
Forbes. (2013). China Economy. Retrieved from Forbes: http://www.forbes.com/sites/billconerly/2011/12/19/chinas-economic
International Living. (2013). Cost of living. Retrieved from International living: http://www1.internationalliving.com/qofl2010/#China
IMF. (2011, September). Slowing Growth, Rising Risks. Retrieved from IMF: http://www.imf.org/external/pubs/ft/weo/2011/02/pdf/text.pdf
Index Mundi. (2013). Current Account BOP. Retrieved from Index Mundi: http://www.indexmundi.com/g/g.aspx?v=145&c=gm&l=en
Index Mundi. (2013). Foreign Exchange Reserve China. Retrieved from Index Mundi: http://www.indexmundi.com/china/reserves_of_foreign_exchange_and_gold.html
Index Mundi. (2013). Foreign Exchange Reserver Germany. Retrieved from Index Mundi: http://www.indexmundi.com/germany/reserves_of_foreign_exchange_and_gold.html
Index Mundi. (2013). GDP Growth. Retrieved from Index Mundi: http://www.indexmundi.com/g/g.aspx?c=ch&v=66
Index Mundi. (2013). Labor Force. Retrieved from Index Mundi: http://www.indexmundi.com/facts/indicators/SL.TLF.TOTL.IN/rankings
Index Mundi. (2013). Labor Force Education Primary. Retrieved from Index Mundi: http://www.indexmundi.com/facts/indicators/SL.TLF.PRIM.ZS/rankings
Index Mundi. (2013). Labor force education secondary. Retrieved from Index Mundi: http://www.indexmundi.com/facts/indicators/SL.TLF.SECO.ZS/rankings
International Living. (2013). Quality of living. Retrieved from International Living: http://www1.internationalliving.com/qofl2010/#China
National Bureau Of Statistics China. (2013). CPI. Retrieved from National Bureau Of Statistics China: http://www.stats.gov.cn/english/statisticaldata/monthlydata/t20130306_402877866.htm
Roubini. (2013). Germany Policy. Retrieved from Roubini Global Economy: http://www.roubini.com/briefings/49792.php
Trading Economy. (2013). Bond Yield. Retrieved from Trading Economy: http://www.tradingeconomics.com/country-list/government-bond-10y
Trading Economy. (2013). Wage Rate. Retrieved from Trading Economy: http://www.tradingeconomics.com/country-list/wages