The beginning of this year was remarkable in a way that never before have stock exchanges around the world, commodities, and currencies like the NZD and AUD taken such a dive in the first weeks of January.
All of this happened due to the growing concerns on the Chinese economy and its impact on global economic growth, demand for commodities, and the transactions carried out with its largest trading partners.
In this article I will explain the interdependencies between China and the rest of the world, be it in commodities or currencies. The data is for the year 2014 as we still do not have official annual data for year 2015. There are a lot of numbers in this article, but this is the only way to communicate the importance of this country to the global economy.
Gross Domestic Product
It is the most populated country in the world with a population of 1.37 billion (further “B"), which makes up 19% of the total world population. Therefore, every one out of five people on this planet is Chinese!
China is the second largest economy in the world (the first one is USA) with a GDP for 2014 standing at USD 10.3 trillion (USD further as “$” and trillion further as “T"). You c…