When Will China Overtake The World's Middle-Income Economy Case Study
There are three burning questions in the coming years, up to 2020 and beyond:
1. Can China overcome the so-called “middle-income trap”?
2. When will China attain its high-income economy?
3. When will China overtake the US to become the world’s number one economy?
According to the statistics of the International Monetary Fund (IMF), only 6 out of a total 185 economies have sustained an economic growth rate of 5%+ per annum, and China is one of the exclusive half-dozen. China intends expressly to keep it up. To quote from REPORT ON THE WORK OF THE GOVERNMENT, delivered by Premier Li Keqiang at the Third Session of the 12th National People’s Congress on 5 March 2015: “... China is the largest developing country in the world; it is still in the primary stage of …show more content…
(5) China’s GDP grew from RMB 40.9 trillion (US S6.04 trillion) in 2010 to RMB 67.7 trillion in 2015 (over US $10 trillion). “The 6.5% figure is the bottom line of China’s GDP growth for the next five years (2016-2020), and an achievable goal,” President Xi Jinping has said. According to Justin Yifu Lin, Vice Chairman of the All-China Federation of Industry and Commerce and Professor at the National School of Development of Peking University, China’s economy can grow at 6.5% or higher per annum during the 13th Plan period. Per capita GDP may reach US$12,615 by 2020. (6) Economic growth will depend mainly on domestic demand – investment and consumption based on income growth and improved labour productivity. Thus, technological innovations and development of industries are key to economic growth in the coming years. Moreover, according to the former World Bank chief economist, the government can also leverage China’s huge private saving (50% of GDP) through
1. Can China overcome the so-called “middle-income trap”?
2. When will China attain its high-income economy?
3. When will China overtake the US to become the world’s number one economy?
According to the statistics of the International Monetary Fund (IMF), only 6 out of a total 185 economies have sustained an economic growth rate of 5%+ per annum, and China is one of the exclusive half-dozen. China intends expressly to keep it up. To quote from REPORT ON THE WORK OF THE GOVERNMENT, delivered by Premier Li Keqiang at the Third Session of the 12th National People’s Congress on 5 March 2015: “... China is the largest developing country in the world; it is still in the primary stage of …show more content…
(5) China’s GDP grew from RMB 40.9 trillion (US S6.04 trillion) in 2010 to RMB 67.7 trillion in 2015 (over US $10 trillion). “The 6.5% figure is the bottom line of China’s GDP growth for the next five years (2016-2020), and an achievable goal,” President Xi Jinping has said. According to Justin Yifu Lin, Vice Chairman of the All-China Federation of Industry and Commerce and Professor at the National School of Development of Peking University, China’s economy can grow at 6.5% or higher per annum during the 13th Plan period. Per capita GDP may reach US$12,615 by 2020. (6) Economic growth will depend mainly on domestic demand – investment and consumption based on income growth and improved labour productivity. Thus, technological innovations and development of industries are key to economic growth in the coming years. Moreover, according to the former World Bank chief economist, the government can also leverage China’s huge private saving (50% of GDP) through