China likely to be high-income economy in 2020 following Korea and Taiwan

Sep 15, 2015, 08:30 am

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By Hong Soon-do, Beijing correspondent, AsiaToday - Despite its current unstable economy, China is likely to overcome the crisis and become the third high-income economy in Asia in 2020 following South Korea and Taiwan. By then, China's per capita gross domestic product (GDP) would stand at $13,000 at minimum, and could surpass $20,000 within the next few years.

China is expected to edge itself into high-income economy in five years./ Source from search engine Baidu

Economic sources in Beijing said on Monday that such outlook is not an exaggeration. Most of all, we can see it from the atmosphere of the recent World Economic Forum (WEF), also known as "Summer Davos", held in Dalian, Liaoning province on September 11. Most of the attendees were optimistic about the Chinese economy's future with expectations that China would sustain solid growth under new normal. In other words, they forecast that the Chinese economy will maintain annual growth of roughly 6%. In this case, China's growth rate of per capita GDP could be approximately 10 percent compared with that a year earlier, which makes it possible to surpass $20,000 in 2017.

Lin Yifun, a Chinese economist and professor at Peking University who created such atmosphere at the Summer Davos, wheeled out virtually the same argument once again on Sept. 12. During the first Great Minds China Forum on Saturday, Lin expressed optimism on the overall Chinese economy and clearly emphasized it's not a dream for China to become a high-income economy.

In fact, such outlook is not just a rosy blueprint looking at recent moves of China's economic authorities. Most of all, it's quite a big decision for them to invest more than 1 trillion yuan in fiscal stimulus over the next three years. China is also actively restructuring state-owned companies to boost its economy. Such move shows that China's economy will gradually rebound and get out of economic crisis.

Of course, China is facing many problems yet. However, if Chinese authorities exert efforts, such problems can be solved to some extent. Therefore, it's not completely a pie in the sky to the general public for their country to become the high-income economy.

#China #high-income economy #2020 #World Economic Forum #Summer Davos 
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