China seen producing 30% of global output of next 5 years

31 October 2016

China, the world's second-largest economy, will account for 30 per cent of the incremental global output of goods and services over the next five years despite the recent decline in its GDP growth rate, says an expert.

Global growth would depend much on the transition of China's economy, according to Chi Fulin, the director of the China Institute for Reform and Development.

China would become an important driver of global economic growth, the Global Times quoted Chi Fulin as saying.

"It is estimated that the contribution of China's economic growth to the world economy is expected to maintain at 25 to 30 percent," he said.

But to say that China, which is around 15 per cent of the global economy and is currently growing at a slower pace, will still add 30 per cent of global output seems a bit stretched, say critics.

Speaking at the China reform forum that opened on Saturday, Chi predicted that the global economy would grow slowly in the next few years, while seeking a new balance, bringing impact on the transition of China's economy.

At the same time, China's economic transition and growth are increasingly influenced by headwinds in the global economy.

Chi's comments come amid global concerns following rapid slowdown in Chinese economy from double-digit growth to quarter-century lows last year of less than 7 per cent. As per official figures, China last year slipped to 6.9 per cent and the government has fixed the target between 6.5 per cent to seven per cent for this year, which too is officially seen as not so easy to achieve.

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