China Set to Overtake U.S. as Biggest Economy by 2016
According to the Organization for Economic Cooperation and Development (OECD), by 2016 China will replace the United States as the world’s biggest economy. Although China’s economy slowed to 7.8 percent growth last year, which was the lowest rate in ten years, this year the growth rate should be 8.5 percent and next year 8.9 percent.
The OECD stated, “There is significant scope for further catch-up in China; China has a strong record with respect to several of the key factors for sustaining growth and is well positioned to emulate the record of earlier stellar Asian performers.” China’s resistance to imports was cited as a reason for its strong growth, as well as domestic rebalancing. The OECD said that consumption in China is now a bigger driver of growth than investment.