The GDP of China shows a decrease in the gross domestic product due to a decrease in the real estate investment. In the year 2010, the investment in the residential real estate directly accounted for 12% of the GDP of China up from 10% in the year 2009. In 2005, the increase in spending on the US residential was equal to 6% of GDP. If the investment falls, it leads to the decrease in the gross domestic product. If the real investment falls by 10 present, then the growth of GDP drops to 5.2%. Even if the investment increases at 10 per cent, then the GDP falls to 7.9%.
Health of the economy
The real estate is directly related to the growth of an economy. The real estate sector contributes in the gross domestic production of the nation. If the real estate sector falls, then it leads to the decrease in the construction jobs, increase in the unemployment, prices of the real estate decreases, values of the homes decreases, rates of the foreclosure increases and the confidence of the consumer increases (Beck, Scott and Yelowitz 422-460). Investing the real estate, owing to a home and selling a home contribute to the positive numbers, and the housing market positively affects the general economy. The measurement by the economic indicators such as employment data, GDP, prices of goods and manufacturing activity are helpful in scaling the growth of the economy. The cyclicality of the economy has a varying effect on the real estate sector. Thus, the real estate played a significant role in the economy of any country, and it provides housing for many families. It considered as a significant source wealth.
The capital or the liquid asset required in the real estate is primarily dealt with the banking sector and therefore, the bank sector is considered to be the integral part of the real estate and gores hand to hand. The real estate and the banking sector are primarily related to the financial loan and mortgages or lease and other key sources. The baking sector and real estate are linked to the external source of the fund. China’s real estate market is increasing exponentially and because of the potential profit the sector able to attract the significant investment. The increase in the real estate investment leads to the special feature of the China economy which leads to the expansion of the regional commercial banking system. It shows that the banks have a tendency to lend considerable amount in the real estate market (Robson 325). The topic five regional banks in China is identified and determined in terms of the size and the percentage of the loan relative to the total loan and thus indicates that the real estate loans account for a vital share for those bank total loan.
The contribution of the real estate sector to the gross domestic product growth is expected to fall in the year 2017. In 2016, the contribution of the real estate sector to overall GDP of China is 6.5 per cent and 7.8 per cent to the GDP growth of the country. The real economy and construction sector are the significant aspects of the property market and play a significant role in the economic growth of the country (Krugman, Obstfeld and Melitz 205).
澳洲论文代写Advanced Thesis网站平台是一家论文代写信誉高的留学教育机构，其中有24小时专业客服为留学们提供随时在线咨询服务，还有一些论文代写、paper代写、essay代写、研究生论文代写、assignment代写等论文服务，澳洲论文代写Advanced Thesis 会以专业认真的教学态度来帮助留学生们完成学业目标，从而顺利拿到专属自己的学位证书！而且以上提供的论文范文，未经授权任何人不得私自转发，如有发现将依法追究其法律责任！