China could maintain 6.5-pct growth rate by 2020
BEIJING: China’s economy can realize a 6.5 or higher annual growth within the 13th Five Year Plan period, and that China’s per capital GDP may reach 12,615 USD by 2020, potentially making China a high-income country at that time, said Vice Chairman of All-China Federation of Industry and Commerce Justin Yifu Lin.
According to Lin, in the past, China’s economic growth relied heavily on exports. However, in the 13th Five Year Plan period, exports will not be the main driving force behind economic growth. Instead, economic growth in this period will depend more on domestic demand.
Lin also said that when it comes to development of industries, infrastructure, environmental protection, urbanization and other areas, there are still many good opportunities for investment.
“We have a great deal of available space in the proactive fiscal policy. The debt of the Chinese government, both central and local, accounts for just 56 percent of China’s total GDP, even though the debt ratio in developed countries is often far above 100 percent. China’s private saving makes up 50 percent of its GDP, and the government can leverage that amount through investment. In addition, China still has as much as 3.5 trillion USD of foreign exchange reserve.”
In Lin’s point of view, if we make full use of the abovementioned favorable conditions, China is likely to achieve a 6.5 percent annual economic growth in the 13th Five Year Plan period. Considering the appreciation of the yuan, China’s per capita GDP may reach 12,615 USD or higher by 2020 if calculated according to the exchange rate of that time.