Understanding China, One Blog at a Time

An American in China

China and the Reality of Her GDP

Posted by w_thames_the_d on February 27, 2011

Excellent post from here:
“Like I said earlier, GDP even counts money that is leaving the country, GNI (Gross National income) however does not. When we look at China’s GNI spread out over it’s 1.3 billion people, China ranks 109th (just behind Tunisia). A better measure of development, that looks at more than just money, is the HDI (Human Development Index). This measure balances life expectancy, years of education, and average income. According to the United Nations, China ranks 89th by HDI, again just behind Tunisia.

China is improving at an impressive rate on this scale, but by this measure is a full 30 years behind the US.

I hope this makes it clear as to why China still claims to be a developing country, because by most measures, it is.”

2 Responses to “China and the Reality of Her GDP”

  1. Tom said

    I’m glad you liked my post on GDP. Economics tend to be such a web of information, so I thought it might be useful to unravel a few of the terms that get tossed about so frequently that we’ve forgotten what they mean.

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