LONDON, Sept 8 — China will become the world’s largest economy in 2024 as its consumer spending is expected to quadruple from 2013 to 2024, said global industrial data and analysis company IHS Inc.
IHS forecasts that this year, with anticipated nominal gross domestic product (GDP) of US$28.25 trillion, China will overtake the United States’ US$27.31 trillion and become the biggest economy in the world, Xinhua news agency reports.
China’s share of world GDP is projected to rise from around 12 per cent in 2013 to 20 per cent in 2025, said the US-based company.
“Over the next 10 years, China’s economy is expected to re-balance towards more rapid growth in consumption, which will help the structure of the domestic economy as well as growth for the Asia Pacific as a region,” said Rajiv Biswas, chief Asia economist at IHS.
In the ten years to 2024, Chinese consumer spending is expected to grow at an annual average rate of 7.7 percent per year in real terms, becoming a key engine of global consumer demand and world growth.
In other words, total Chinese consumer spending will grow from the current US$3 trillion dollars to US$11 trillion by 2024.
“The World Economic Forum’s upcoming Meeting of the New Champions in Tianjin, China will focus on science, technology and innovation,” said Biswas.
“These are some of the key sectors that will be crucial in helping to transform China’s economy from the low-cost manufacturing export-driven economy of the past three decades into a higher value-added economy, driven by domestic consumer demand,” he said.
In April, the International Comparison Programme said China was poised to overtake the US as the world’s biggest economy earlier than expected this year based on the so-called purchasing power parity. — Bernama
