- China Business Blog - http://www.chinabusinessservices.com -

GDP Growth Receives a Boost from Beijing

In a restatement of GDP growth, following a national census, China is now claiming to be the sixth largest economy (up from seventh). It may leapfrog to the number four position after publication of the 2005 figures. Reports indicate that the GDP has been raised by US$285 billion, or about 17 per cent with much of the growth coming from previously unreported activity in the private economy, and especially in the service sector.

It is expected that services will be shown to account for as much as 40 percent of GDP, compared with 1994s official level of 33 percent, and that consumption may be as high as 60 percent of GDP. The figures indicate a reduced reliance on investments and exports as drivers for growth, and also reflect the spending power of the Chinese consumer something that will make the Chinese government, and many international businesses, very happy.

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(Updated 21/12/2005)