Economy of the People's Republic of China

The economy of the People’s Republic of China is the third largest in the world after the United States and Japan with a nominal GDP of US$4.6 trillion (2008) when measured in exchange-rate terms. It is the second largest in the world after that of the U.S. with a GDP of $7.8 trillion (2008) when measured on a purchasing power parity (PPP) basis.[4] China has had the fastest-growing major economy for the past 30 years with an average annual GDP growth rate above 10%.[5] China’s per capita income has likewise grown at an average annual rate of more than 8% over the last three decades drastically reducing poverty, but this rapid growth has been accompanied by rising income inequalities.[6] The country’s per capita income is classified in the lower middle category by world standards, at about $3,180 (nominal, 104th of 178 countries/economies), and $5,943 (PPP, 97th of 178 countries/economies) in 2008, according to the IMF.