China GDP in 2018 tracking at 10.5% higher and China will pass world per person averages in 2019

China’s GDP for the first quarter of 2018 was 19.88 trillion yuan. This was 10.5% more than the first quarter of 2017 (18.03 trillion yuan).

The exchange rate is 6.32 yuan per US dollar. The exchange has been in the range of 6.25 to 6.35 for most of 2018.

The inflation rate is 1.5 to 2.9%.

For the past four quarters, the GDP was 84.56 trillion yuan. This is US$13.4 trillion. Adding in Hong Kong and Macau puts China’s GDP at $13.8 trillion.

China’s per capita GDP is $9500.

If China maintains the first quarter pace throughout 2018 then GDP China GDP should be 91.2 trillion yuan ($14.5 trillion). Per capita income would be $10,200.

The nominal (exchange rate) GDP per capita of world in 2018 is forecasted at $11,311, its GDP per capita (PPP) is projected at $17,936.

China’s PPP GDP per capita will be very close to the world average of GDP per capita at the end of 2018.

For the current 2018 fiscal year, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,005 or less in 2016; lower middle-income economies are those with a GNI per capita between $1,006 and $3,955; upper middle-income economies are those with a GNI per capita between $3,956 and $12,235; high-income economies are those with a GNI per capita of $12,236 or more.

China will have GNI per capita of about $9700-10,000 at the end of 2018. China will likely be defined as a high-income economy by the World Bank in 2021-2023.

China’s GDP between January and March this year grew by 6.8 percent more than during the same period in 2017.

Exports will play a smaller role for China’s economy. Ten years ago, they made up 35 percent of China’s GDP. Exports currently make up 18 percent of China’s economy.

Consumption in China now makes up 77.8 percent of the economic growth, having increased by 20 percent since last year. Compared to the US, where it makes up 70 percent of the economy.

In the first quarter of 2018, it produced 30 percent more industrial robots than in the year before and 139 percent more electric cars.

If trade were to completely stop between the US and China, it would affect China’s growth by between 0.3 and 0.6 percent according to the Beijing-based economy professor, Hu Xingdou.

The “New Silk Road” project is creating and growing new export markets exports, in South Asia, Latin America and Africa. China’s exchange of goods with ASEAN states alone has grown by 9 percent to $279 billion (€227 billion). When the Silk Road is finished, it will link 65 countries and unite some 40 percent of the global economy.

China has economic weak points :
* The gap between the rural and urban parts of the country remains a challenge for Beijing.
* slow retail figures in rural areas.
* The debts of state businesses and official budgets are also growing.
* Inefficient state companies have high debts
* overcapacity in state, cement and aluminum production has to be balanced.

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