What Is a Developed Economy?
An economy is a collective term and division of the economic composition of a region. An economy can refer to a region, such as Taiwan, or a group of countries within the region, such as the European Union or ASEAN.
Economy
- Economy means
World economy
- The world economy refers to an economic community or economic cooperation group formed by multiple countries in order to achieve preferential trade policies so as to achieve common economic benefits in response to fierce market competition.
- At present, the three well-known and larger economies in the world are the European Union (EU), Asia-Pacific Economic Cooperation (APEC), and North American Free Trade Area.
- Emerging economy
Economy concept
- In recent years, the economic development of some countries and regions has advanced by leaps and bounds, and their speed and quality have greatly surpassed those of developed economies. Therefore, these economies are often referred to as emerging economies. For example, China, Brazil, and India are the emerging economies of the four famous BRIC countries. They have changed the world economic structure to some extent.
Economy definition
- Regarding emerging economies, there is currently no precise definition. The British "Economist" divides emerging economies into two echelons: the first echelon is China, Brazil, India and Russia, also known as the "BRICs"; the second echelon includes Mexico, South Korea, South Africa, Poland, Turkey, Egypt Wait for "new diamond" countries.
- Economy
- Based on the outstanding performance of emerging economies, more and more people are realizing that while developed economies are plagued by the financial crisis, emerging economies are becoming "sources of world economic stability." The IMF predicts that although the economic performance of developed economies will be even weaker in 2008, the world economy is still expected to grow by 4.1% due to the emergence of emerging economies.
Economic strength performance
- Although the economic growth of emerging economies has slowed down, experts have analyzed that after the impact of the financial crisis, emerging economies have adjusted their economic structures, increased foreign exchange reserves, improved their financial systems, and increased their ability to withstand risks. The world economy will continue to grow.
- At the same time, South-South cooperation has also reduced the dependence of emerging economies on the economies of developed countries. The formation of the Southern Common Market and the cooperation between China and ASEAN have also provided a guarantee for the continued economic growth of the world.
- Economy
- On the eve of the Asia-Europe Summit, French President Nicolas Sarkozy announced that he had invited five emerging economies, including China and India, to participate in the G20 summit in Washington on November 15th to discuss the response to the financial crisis. The economy has become a force to be reckoned with.
- The economics community believes that 2010 is likely to be a year of global economic recovery, and emerging economies such as China and India will be at the forefront of recovery. In the latest report on the 2010 economic forecast, the IMF believes that after the 3.4% economic recession in 2009 in developed countries, economic growth this year was only 1.3%. But in sharp contrast to this is the rapid growth of emerging economies. Developing countries as a whole will reach 5.1% in 2010, of which India will reach 6% and China will reach 9%.
- Standard Chartered Bank also pointed out that the global economic growth in 2010 is expected to reach 2.7%, of which Asian economic growth will reach 7.0%. This once again shows the trend of global economic power and economic balance shifting from west to east.
Chinese economy
- In July 2010, Rob Subbaraman, chief Asian economist at Nomura Securities, said that Japan used to be the driving force behind the rest of Asia; now the trend is turning and China is becoming an influence that includes Japan Power in other parts of Inner Asia. China replaced Japan as the world's second largest economy. This renaissance is changing everything, from the balance of global military and financial forces to how cars are designed.
- Economy
- China's exports, car purchases and steel output have ranked first in the world, and its global influence is growing day by day. From auto makers in Detroit to iron ore producers in Brazil, their wealth depends on the spending of Chinese consumers and businesses.
- The increase in wealth has also brought political influence: pressure from China has helped developing countries gain a greater say in the World Bank and International Monetary Fund.
- On July 30, 2010, Yi Gang, vice president of the People s Bank of China and director of the State Administration of Foreign Exchange, stated in an interview that China has surpassed Japan to become the world s second largest economy. This is the first time Chinese officials have pointed out that China's economy has become the second largest in the world.
- At present, China's GDP should have surpassed Japan's, so China has no doubt become the world's second largest economy. At the beginning of 2010, China announced that the total GDP of 2009 reached 4.985 trillion US dollars. At that time, media from various countries speculated that China's GDP would surpass Japan this year and become the world's second economy. Although Japan s 2009 GDP was reported at 5.068 trillion US dollars later, the figure is slightly higher than China. China's economic data has maintained an increase of more than 11% this year, and Japan can only look forward with regret. Strong economic growth is sufficient to support China as the world's second largest economy.
- Data on August 16, 2010 showed that Japan s GDP in the second quarter was $ 1.288 trillion, lower than China s $ 1.339 trillion. In the past, China's economic output surpassed Japan's in the fourth quarter. That's because in the last quarter, seasonal factors will make China's economy more active. Now, it surpassed Japan as early as the second quarter, making China s full-year output stronger than expected.
- Before 2000, China was the seventh largest economy in the world at the exchange rate at that time. Before 2007, China surpassed Germany to become the third in the world. Compared with China's rapid economic growth for so many years, Japan's economy has stagnated for 20 years. The change of seat is a matter of course. According to the Wall Street Journal, Bruce Kasman, chief economist at JP Morgan Chase in New York, commented that China's surpassing Japan would be "a milestone in the global economy." I believe that other economists and ordinary people will think so.
- However, China's per capita annual output is less than $ 4,000, which is only about one-tenth of Japan's per capita annual output. Compared with the world s largest economy, the United States, China s $ 5 trillion economic scale is equivalent to only one-third of the latter s total output, and the gap is still large. Even if China can maintain its current growth rate, it will take at least 10 years to catch up with the United States. China should focus more on how to adjust the structure of economic growth and how to further improve national welfare.
- According to the "Global Innovation Index 2015" report released today by the World Intellectual Property Organization, among the most innovative economies, high-income economies continue to occupy a monopoly position, but China stands out among middle-income economies and gradually ranks The forefront of the "most innovative economy".
- The report states that, although high-income economies dominated this year's rankings, China's performance as a middle-income economy was an exception. China stands out, ranking 29th. China's innovation performance is very close to the top 25 high-income economies, especially in areas such as human capital development and investment in research and development. In terms of quality of innovation, China also scores well, and it is constantly distanced from other middle-income economies.
- Francis Gurry, Director General of the World Intellectual Property Organization, said: "For economies at all stages of development, innovation will have a profoundly positive impact on stimulating economic growth. But this prospect will not be realized automatically. Every Economies must find the best policy mix to mobilize the potential for innovation and creativity inherent in the economy. " [1]