George Chow: China GDP Growth at 8% in Next 10-15 Years12-28 13:21 Caijing
Chinese economy is likely to keep growing at a relatively high speed of 8 percent, or even higher in the next 10-15 years, according to Chinese American economic George Chow, despite a slowdown in recent two years.
Chow, author of Knowing China and an emeritus professor of economics at Princeton University, predicted that while the coastal provinces are getting richer, China's poorer inland provinces are expanding fast enough to drive forward development of the overall economy.
"That's why I'm saying China will keep growing at 8% for the next 15 years," Chow said.
He added that the world's economy has managed an average growth rate of 10 percent over the past 30 years, and maintained the growth momentum even when the U.S. and Europe were caught in a recession.
He cited sufficient human capital as one of the key factors capable to promote economic growth in a country with thousands years of history and culture. He believes such historic legacies have created a dependable reservoir of labour, including entrepreneurs and hard-working workers.
In addition, China has already set up an effective market mechanism after 20 years of development, which will contribute to a high-speed growth prospect in the future.
Without the market mechanism, although it still needs to be imporved, just like in the era of the planned economy, China's economy was unable to grow this fast, he said.
China's GDP growth slowed to 9.2% in 2011 and is expected to slip further to 7.5% this year on weaker demand, snapping the double-digit growth the world's second largest economy had seen in twenty years.
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