According to a recent report released by IHS, a global information company, China will overtake the U.S. to be the biggest economy by 2024. A surge in Chinese consumer spending will life Chinese economy, predicted IHS.
A successful transition from investment-led growth to domestic spending would push up China’s GDP to $28.3 trillion by 2024 from current prices of about $10 trillion, said the report.
“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, IHS’s chief Asia economist.
As “a key engine of global consumer demand”, consumer spending in China will grow about 7.7 percent annually over the next decade. The rapid growth will also play a bigger role in driving global trade and investment flows, said the report.