China Economy Powers On

20 September 2005

The pace of China's economic growth shows no signs of slowing.

A new report by the Organisation for Economic Cooperation and Development says the country's economy has grown by an average of 9.5% each year for the past 20 years.

The Paris-headquartered OECD predicts China could overtake the UK, France and Italy in the next five years, at the same time leapfrogging the US, Japan and Germany to become the globe's biggest exporter.

And it is China's private sector that has powered this economic miracle, says the report. Half of national income and nearly all new jobs are now generated privately.

The organisation says that China needs to spend more on education and health and must address environmental problems, such as pollution, caused by its rapid transformation from peasant to industrial economy.

It also wants to see changes in taxation policies, property rights and more flexibility in its currency.

Data sourced from BBC Online; additional content by WARC staff