For every country’s economy to be successful, there are some factors that are rather crucial. One of them is the gross domestic product, or GDP, that influences any country’s welfare and prosperity. The purpose of this paper is to provide the gross domestic product figures of the United States of America and China and compare them. Also, the reasons why the Chinese GDP is lower than the American though China’s population is much greater will be discussed.
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Gross domestic product is the total value of everything that is produced in a country both by its citizens and foreigners. In 2018, the gross domestic product in the United States of America was 20494.10 billion US dollars, which represented 33.06 percent of the world economy (Silver). As for China, its GDP was $13.37 trillion, lower than the American one by $7.21 trillion (Silver). Despite the fact that the population of China is much larger than the American one, the USA’s gross domestic product is higher.
China and the United States of America are the two largest economies in the world. The reason for China’s lower GDP may probably lie in the trade war – a current economic conflict that the country has with the United States. Also, because of the huge population of China that is more than four times higher than the US population, there is a vast difference between the two countries in terms of per capita income. In America, per capita income is higher than in China, and people are richer. The USA is the eighth most prosperous country in the whole world, while China is at seventy-second rank, and this fact influences the countries’ gross domestic product figures.
Silver, Caleb. “The Top 20 Economies in the World. Ranking the Richest Countries in the World.” Investopedia. 2019. Web.