China Daily quoted the World Bank chief economist said, China economy will probably become the world biggest by 2030 when it will be twice the size of the United States, if measured in terms of purchasing power parity.
Mr Justin Lin senior vice president and chief economist at the bank said "China could maintain GDP growth of 8% over the next 20 years which will make it the world 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.”
Mr Lin made the remarks at the China Economic Development Forum in Hong Kong. He said that by 2030, the country per capita income, measured in terms of PPP may reach 50% of the per capita income in the US.
He added that "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."
He also said the concentration of income in the corporate sector and the wealthier section of society is contributing to the rising disparity in incomes and other imbalances in the economy.
Mr Zheng Xinli vice president of the China Center for International Economic Exchanges said "China still has huge potential to maintain strong growth, as the country urbanization rate is likely to reach 70 percent by 2030 from the current 47%."
He 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. He added that "But rising inflation and accelerating capital inflows are prominent problems facing these countries in the short and medium terms especially China."
Mr Yi Gang deputy governor of the People Bank of China, the central bank, said in Hong Kong on Wednesday that he was confident the government will be able to keep consumer price inflation at or below, 4% this year.
He said that "The inflation figure will rise to as high as 5 percent in May or June this year, but because of the higher base figure of the second half of 2010, inflation in the second half of this year will cool. So throughout the whole year, we will be able to meet the government's 4% target."
Mr Yi said he is comfortable with the current level of interest rates and that raising them excessively would attract hot money inflows.
China consumer price inflation rose to 4.9% in January and February from 4.6% in December. It hit 5.1% in November a 28 month high. A drought in some major grain producing areas, together with increases in international grain and oil prices has led to growing concerns about rising inflation.
( source: www.steelguru.com )