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Briefly comment and point out something interesting from the following post: China's economy has drastically changed for the better in the last forty years. They
Briefly comment and point out something interesting from the following post: China's economy has drastically changed for the better in the last forty years. They have grown to be the second largest economy in the world. This report will go over certain trends that emerged as we explored China's economy and key economic indicators. China's balance on current account increased rapidly and they tend to have a surplus in their current account. The balance in the current account seemed to peak in 2018 while the financial account had a small dip it was still able to maintain a surplus, this could tell us that China official reserve was increasing along with their investment portfolio. After 2014 the financial accounts have begun to show a negative balance trend that seemed to be correcting itself until 2020 which was likely yet another side effect of COVID on the economy of the country. The growth of China's economy was primarily due to exports especially after 2005 when the exchange rate shifted from fixed to floating. In my opinion, China will likely be able to have twin surpluses again. The exchange rate has facilitated exportation, and the low cost of labor and manufacturing has
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