China was certainly one of the few economies globally that grew in 2020 regardless of the challenges posed by the pandemic. Official information confirmed the Chinese economy grew by 2.3% last year. The International Monetary Fund has forecast an 8.1% development for China this year.
China stands a good chance of doubling the size of its economy by 2035 and surpassing the US as the world’s largest economy along the way, said an economist from the Bank of America.
As China seeks to become an advanced nation, Chinese President Xi Jinping said that it was possible to double the country’s gross domestic product and per capita income by 2035. Doubling of China’s GDP requires an average annual growth of 4.7 per cent for the next 15 years.
In a report published earlier this month, Qiao addressed the common concerns that would hinder China from its 2035 economic goals. She listed three reasons that sceptics often cite:
- China’s ageing population will hurt its potential growth.
- China’s high debt-to-GDP ratio will threaten economic stability.
- The country’s investment-led growth model is not sustainable and cannot drive growth over the longer term.
Those concerns will slow but not derail China’s overall growth trajectory, according to the report.
The economist cited further tensions between Washington and Beijing as a possible threat to China’s economic growth.