China eyes 15 percent share in global economy

Last Updated: Tue, Nov 20, 2012 08:00 hrs

Beijing, Nov 20 (IANS) China will play a bigger role in the global economy in the next decade by increasing its share of the global gross domestic product to about 15 percent by 2020, the investment banking company Goldman Sachs said.

Currently, the country holds 10 percent of the global GDP, the China Daily reported Tuesday.

Jim O'Neill, chairman of Goldman Sachs asset management, said China's GDP is estimated to be 8 percent next year, compared with the US's 2.5 percent and Britain's 1.8 percent.

Eight growth markets − China, India, Russia, Brazil, Indonesia, Turkey, Korea and Mexico − had about 26 percent of the 2011 global GDP share. The number will grow to about 35 percent in 2020, according to O'Neill.

"From late 2009 to late 2011, the country's (China's) economic policy has tightened a lot, because its biggest policy challenge is reducing inflation," O'Neill said.

"It is now focused on more quality economy growth rather than GDP. In the past six months, there have been some capital outflows from China, which partially reflects investors concerns about the economy slowing down there," he added.

As China becomes a more developed economy, the yuan will become more volatile than it used to be, the newspaper quoted O'Neill as saying.

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