China GDP of $20,853,331 is ranked number 1 in 2016 GDP (PPP) billions of USD. Yes that's ahead of the US with $18,558,129.
China is fully recognized as one of the top economies of the world. They are at this position while their economy continues to ascend. It will only be a matter of time before this country becomes the country with the best economy worldwide. Yes Trump wants to make America Great again but actually America was already doing pretty amazing under Obama.
The steady growth of Chinas economy has impacted the financial decisions of some country. The United States of America reconsidered an increase in the federal reserves' rates. There was concern about the financial global market and its volatility due to the prediction of some emerging and fast growing economies. Now we still are waiting for the Feds to change the rate in December.
Asia is comprised of some of the fastest growing economies in the world. It also has one of the biggest economies in the world and this is thanks to countries like China, Japan, the ASEAN countries South Korea and India. The economy of the region will become the number one in the next couple of years. It is no question that the strength of the Asian economy is due to the growth of the individual countries that makes up the region. The growth of the Asian economy might pose problems however, if certain risks are not addressed cautiously.
The economy of the region is the strength behind the influential powers Asia now boasts. In the nineteen nineties, the region's share in the GDP of the world was below a twenty five percent. This has significantly changed as the share of the region was almost up to forty percent by the year 2014. This is of a higher value than that of the United States and of Europe. Asia's share is expected to reach approximately fifty percent within a decade if the growth of key country in the region continues to trend in their current manner.
It is predicted that Japan's share in Asia's GDP will continue to decline while China's will continue to increase. Japan is now 4th in 2016 at $4,901,102 GDP. China's share in the GDP of the region doubled during a period dating from nineteen ninety to two thousand and fourteen whilst Japan's did the complete opposite. The countries of Asia as made the region somewhat of a factory for the countries of the western world. China has only recently started to make its present felt in terms of providing the west with products. The first couple of Asian countries that acted as factories for the west includes, Japan, Singapore, South Korea and Taiwan. Most of the success of Asian economies can be accredited to global value chains and the movements within. The Trade in Value Added database of the Organization of Economic Cooperation and Development have indicated that that Asian countries have integrated on a higher level with global value chains which increase the trade, investment and development on a global scale.
The rapid growth of the Asian economy have made the production links of the region very strong. This in turn as made it possible for the region to provide an even larger market for firms worldwide. The role that Asia has played in the global demand will continue to increase along with the rise in its affluence. The Asian market will look more appealing with the increase of integration within Asia itself along with trade agreements with growth centers of the world. The region itself has also benefited from its contribution to the world's supply and demand. Asian companies have gotten plenty recognition on a global scale thanks to the links to GVCs. Many of Asia's have been named on the list of fortune five hundred companies of the world.
Asia is currently the number one consumer of liquid fuels and petroleum and this is according to the US Energy Information Administration. The US is no more the driving force behind the price of oil. Current Crude Oil & Natural Gas price is around USD/bbl $45. The greatest influence on the commodity market current is Asia, hands down. The demand of the Asian region has impacted many countries especially those that produce commodities. These countries have to supply the demand of Asian countries now along with the demand of the western world as well. The increase in the Asian demand has open a door for investors to invest in the rich resource economy of countries such as Africa and Latin America. Many investors are now opting to boycott the markets of the western world for the Asian growth centers.