Economic growth in a given country can be monitored through several factors and economic indicators such as GDP. However, the pure values of the parameters cannot reflect the peculiarities of the course of economic processes. Therefore, it is also necessary to take into account the peculiarities of the state in question. This discussion aims to compare the performance of the two states, Canada and China, to analyze the difference between them and explore the specifics of long-term economic growth.
Although these two states are located far from each other, they have more in common than meets the eye. Both countries occupy large areas of space, have developed economies, actively participate in world trade, and are essential players in the political arena.
However, the economic performance of both countries is entirely different from each other. This phenomenon among the two developed economies can be explained by historical features, the chosen course of action, and the specifics of the development of the state. China has only recently become a more open power, reforming its economy. That is why it needs to develop much more actively.
Canada, in turn, has held a strong position in the world since the Second World War, being one of the founding countries of the World Bank Group. Having many contacts with other countries, Canada does not need to rush to develop its own economy since the course of development of this state differs from that of China.
The differences in these trends can be easily traced through the analysis of economic indicators. So, for example, while Canada’s GDP doubled in 15 years from 2000 to 2015, the Chinese economy is growing a staggering nine times. At the same time, China has seen a clear transition from agriculture to industry and services, as these two categories allow China to achieve much more efficient development.
Such a significant GDP growth for China is due to the enormous population and the need to raise most of it above the poverty line. However, in comparison, the economy of Canada remains more developed since the GDP per capita in this state is several times higher, which reflects a higher standard of living.
Consequently, long-term economic growth differs in these two states due to their history and position in the world. While China needs to build up its economy and get rid of poverty, for which the industry is actively developing, Canada is already in a reasonably stable position, which allows this state to focus on improving the quality of life and the service sector.