China’s Purchasing Power Still an Influence in the Global Economy
Although the Chinese economic growth rate might have slowed down, but its influence on the global economy is set to keep expanding. China also added the equivalent of Turkey’s entire economy to the global GDP for 2015, and the country is responsible for 12 percent to the total world Gross Domestic Product. China is in the transition phase from a manufacturing dominated economy to a economy driven by a domestic consumption which accounts 30 percent of the total global investment demand.
Chinese investment is coming in a wider range of industries especially in the retail, property and financial services. Chinese consumers and contributors of the soon to be enhanced domestic consumption is getting richer, as HSBC estimating that around two thirds of the population is part of the urban middle income class who are earning 12 to 50 US dollars a day by 2025. The estimate rich implications as the population are not only growing in income, more importantly it being felt around the world.
Furthermore Chinese demand will boost South Korea’s Gross Domestic Product by 0.2 to 1.8 percentage points depending on the pace of the growth in China. A share of Chinese viewers in the global takings for movies also jumped more than 10 percent compared to the 2 percent in 2007. Movies that were made in the United States has benefited most in this fast growing demand in films, Chinese box office takings in American films increased by 49 percent year by year in 2015.