WB Chief Economist: China May Achieve Another 20 Years of 8% Growth

Considering ways to tackle multiple economic challenges, China has the potential to achieve another 20 years of eight percent annual growth, World Bank (WB) Chief Economist Justin Yifu Lin said on Wednesday.

Estimations showed that China's current relative status to the United States was similar to Japan's in 1951, and South Korea's in 1977, who were in their high-speed development period, said Lin, also World Bank Senior Vice President, at a forum held in Hong Kong.

"By the year of 2030, measured by purchasing power parity, China's economic size may be twice as large as the US," and China's per capita income would be half of that of the United States by then, predicted Lin.

Measured in purchasing power parity, China's per capita income was 21 percent of that of the United States in 2008.

Meanwhile, Lin also noted that China should face challenges while endeavoring to maintain vigorous growth. He pointed out that China should consider ways to rebalance its economy towards domestic demand, given the inevitable slowdown in the exports and the need to reduce trade surplus.

China also needs to reduce its income disparities and rebalance short-term growth and long-term environmental sustainability, he added.

"It is imperative for China to address the structural imbalances, by removing the remaining distortions in the finance, natural resources and service sectors so as to complete the transition to a well-functioning market economy," the economist suggested.

China Economic Development Forum, organized by the Hong Kong University of Science and Technology as a part of celebration activities for its 20th anniversary, invited business professionals, academics and policymakers to share insights on the economic development of China.