Becoming the largest driver of world growth, China's economy is set to expand 11.2% the International Monetary Fund said July 25 as part of a revised global outlook.
"For some time China has been the largest contributor to global growth measured in purchasing power parity," Charles Collyns, the IMF deputy director of research said. In purchasing power parity terms, discounting exchange rate fluctuations, China represents 15% of the global economy, he said. On market-exchange rate terms, "China is only 5% of the global economy and therefore its contribution to global growth is substantially less.
"This year for the very first time, with its very strong growth expected, and with the growth slowdown in the U.S., China will be contributing the largest part to the increase in the global growth measured at market exchange rates as well as purchasing parity terms."
China provides one quarter of the annual growth rate of the world economy, Collyns said. The Asian powerhouse, combined with the other leading emerging market economies of India and Russia, would account for half the growth, he added. The Chinese economy grew 11.1% in 2006 and 10.4% 2005, according to the IMF.
Copyright Agence France-Presse, 2007
