Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Key economic indicators of China - statistics & facts
Over the past four decades, China has experienced enormous economic growth to become the world’s second largest economy based on nominal GDP. During this time, China’s economy transformed from a centrally organized system to an increasingly open market-oriented entity. However, average per capita GDP in China is still lower than in major developed countries, which indicates that China still has potential for future growth.
As labor costs increased over the years and the population aged quickly, China made strong efforts to climb up the value chain. It invested heavily in new technologies and the IT sector with the dedicated goal to transform China into a high-tech superpower. As a result, the share of the industrial sector in total economic output decreased gradually.
In recent years, however, China’s economy is increasingly facing structural difficulties. High indebtedness, limited domestic demand, geopolitical tensions, and strong governmental market interventions put strains on economic development. Annual GDP growth decreased gradually from 10.6 percent in 2010 to 5.0 percent in 2024 and is expected to continue cooling down in the years ahead.
For the future, China’s approach to international relations and developments in China-U.S. rivalry will be of great importance. At present, both sides seem to be determined to reduce mutual dependencies of the two biggest economies in the world, even though this comes at the price of harming their own economic interests. However, economic benefits from cooperation remain to be very strong for both sides and may have a considerable balancing effect on the relationship.
Economic development in China
As one of the fastest-growing major economies in the world, China maintained an average economic growth rate of over nine percent between 1980 and 2020. During this time, the country’s economy benefitted from its cheap and abundant labor force. Further propelled by its integration into global markets, China came to be known as the workbench of the world.As labor costs increased over the years and the population aged quickly, China made strong efforts to climb up the value chain. It invested heavily in new technologies and the IT sector with the dedicated goal to transform China into a high-tech superpower. As a result, the share of the industrial sector in total economic output decreased gradually.
In recent years, however, China’s economy is increasingly facing structural difficulties. High indebtedness, limited domestic demand, geopolitical tensions, and strong governmental market interventions put strains on economic development. Annual GDP growth decreased gradually from 10.6 percent in 2010 to 5.0 percent in 2024 and is expected to continue cooling down in the years ahead.
Trade and international relations
China is the world’s largest exporter and second largest importer. Leading trade partners are East and Southeast Asian countries, the European Union, and the United States. China is running a huge trade surplus, which hit a record high of 992 billion U.S. dollars in 2024. Although the country’s service net imports have increased again since 2022, a large current account surplus remains, a fact that has the potential to reignite former trade disputes, especially those with the United States.For the future, China’s approach to international relations and developments in China-U.S. rivalry will be of great importance. At present, both sides seem to be determined to reduce mutual dependencies of the two biggest economies in the world, even though this comes at the price of harming their own economic interests. However, economic benefits from cooperation remain to be very strong for both sides and may have a considerable balancing effect on the relationship.
