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China’s economy will probably become the world’s biggest by 2030, when it will be twice the size of the United States, if measured in terms of purchasing power parity (PPP), according to ChinaDaily.com

The report quoted the senior vice president and chief economist at the World Bank Justin Lin saying: “China could maintain GDP growth of 8% over the next 20 years, which will make it the world’s biggest economy.” He added that by 2030 the Chinese economy may be approximately the same size as that of the US at market exchange rates in terms of nominal GDP.

Lin made the remarks at the China Economic Development Forum in Hong Kong.

In 2010, China overtook Japan to become the world’s second-largest economy. It has set a target of 8% for GDP growth for this year. The country is also aiming to record average annual GDP growth of 7 % in each of the next five years.

Lin said that by 2030, the country’s per capita income, measured in terms of PPP, may reach 50% of the per capita income in the US.

“It is imperative for China to address structural imbalances, by removing the remaining distortions in the financial, natural resources and service sectors to complete the transition to a well-functioning market economy,” Lin said.

“China still has huge potential to maintain strong growth, as the country’s urbanization rate is likely to reach 70% by 2030 from the current 47%,” said Zheng Xinli, vice-president of the China Center for International Economic Exchanges.

Zheng said that the total GDP of Brazil, Russia, India, China and South Africa will account for 47%, or possibly more than 50%, of the global economy 20 years from now.

“But rising inflation and accelerating capital inflows are prominent problems facing these countries in the short and medium terms, especially China,” said Zheng.

— Source: ChinaDaily

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