Further confidence in Chinese economic growth potential was provided this week by Lehman Brothers - the investment bank based in the US. A report released last week contained the following significant snippets...
"...China can sustain an average annual economic growth rate of six per cent and dislodge Japan as the world's second largest economy in less than three decades..."
"...Overall, our assessment is that China's economy has the potential to sustain an average growth rate of around six per cent over the next 20 years..."
If this growth is sustained, says Lehman, "...China's economy by 2030 will be bigger than each of the major European economies and could conceivably displace Japan to become the largest economy in Asia, and the world's second largest economy after the US...."
"...By 2020, China's services sector should have overtaken its agricultural and industrial sectors and the purchasing power of the country's domestic market could be larger than the whole of Europe's..."
"...However, the key to China's economic success - as most other Asian countries can now testify - is not to grow as fast as possible. Rather it is to improve the quality of economic growth....
Published February 17, 2002 08:36 AM in China PRC
Asia Market Research News is available for syndication