China Economy: Will Not Be Larger Than U.S. Even By the End of This Century
Despite a significant growth differential in China’s favor, the country’s per capita GDP will equal only 42% of the U.S. level by 2050.
1. China’s three and a half decades of remarkable economic growth have lifted about 500 million people out of poverty, according to the World Bank.
2. Despite this transformation, however, China’s per capita income remains only a fraction of the U.S. level.
3. In 2014, China’s per capita GDP of $12,890 (measured at purchasing power parity) was less than a fourth of U.S. per capita GDP ($54,680).
4. According to estimates of long-term economic growth by PwC, China’s per capita GDP will increase by average of 3.4% per year between 2014 and 2050.
5. At that rate, China’s per capita GDP growth will be nearly double the U.S. rate of 1.8%.
6. Despite this significant growth differential in China’s favor, the country’s per capita GDP will equal only 42% of the U.S. level by 2050.
7. Even if China’s growth advantage remains this large for the rest of the century, its per capita GDP will still only reach about 90% of U.S. per capita GDP.