China will become the world’s largest economy in 2024, as the country’s consumer spending is expected to almost quadruple from 2013 to 2024, IHS Inc. a global industrial data and analysis company said Monday.
IHS forecast in a press release that in 2024, with anticipated nominal gross domestic product (GDP) of $28.25 trillion, China will overtake the United States’ $27.31 trillion , becoming the biggest economy in the world, according to China’s Xinhua News Agency.
China’s share of world GDP is forecast to rise from around 12% in 2013 to 20% in 2025, said the US-based company.
In the ten years to 2024, Chinese consumer spending is expected to grow at an annual average rate of 7.7% per year in real terms, becoming a key engine of global consumer demand and world growth, said IHS. In another word, the total Chinese consumer spending will grow from the current $3 trillion to $11 trillion by 2024.
In April, however, the International Comparison Program said in a statement that China is poised to overtake the US as the world’s biggest economy earlier than expected, possibly as soon as this year, using calculations that are based on purchasing power parity (PPP).