China projected to become high-income country by 2025

From: China Daily
Time: 2015-06-11

China can sustain an annual growth of around 7 percent during the 13th Five Year Plan from2016 to 2020, and enter the high-income stage by 2025, primarily due to the deepenedreformreported Economic Information Daily quoting a think tank.

The potential growth rate will average or even surpass 7 percentprovided that the reform'spull-up effect to productivity equals to at least half of that in the last round in 1994, said SongLidirector of the Institute of Economic Research under the National Development andReform Commission (NDRC).

"Constrained by the change of factor conditionseffects that this round of reforms can delivermay be short of that in 1994, but a 50 percent or above basically can still offset downwardeffects," said Song to the newspaper.

He projects China to enter the stage of a high-income country in around 2025 after replacingthe US as world's largest economy.

"The quality of growth throughout the 13th Five Year Plan will be especially crucial in terms ofskipping the so-called 'middle-income trapand leaping directly into high-income," said theresearcher to the newspaper.

This year marks the final year of the 12th Five Year Plan and the beginning of policy planningfor the five years ahead.

Song advised the 13th Five Year Plan should extend policy scope throughout 2030, mappingout strategies to upgrade industrial structuresbuild consumption-driven urbanizationgoglobal and to promote energy saving and environmental friendlinessaccording to thenewspaper.

Reform will take the lead from demography and resources to generate economic dividendsand become the new power for sustainable growthhe added.

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