New Delhi: China will overtake the US to become the world's biggest economy over the next decade, according to an IHS report.0
The report suggests that Chinese consumer spending is predicted to triple over the next decade, increasing from $3.5trillion to $10.5trillion. The US has held the crown as the world's economic powerhouse for more than a century.
IHS said a successful transition from investment-led growth to domestic spending would push up gross domestic product (GDP) at current prices from around $10 trillion in 2014 to $28.3 trillion by 2024. The US economy is expected to grow from around $17.4 trillion to $27.4 trillion over the same period.
According to experts, consumer spending in China will grow at an annual average rate of 7.7 per cent year in real terms over the next decade to become "a key engine of global consumer demand".
The report says the Chinese consumer market will become three times larger than Japan's within 10 years. The study also expects the Indian consumer market to catch up with with Japan over this period. IHS said that rapid growth in consumer demand would provide a boost to other APAC nations through tourism and trade ties.
