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China 'to grow 7% for 5 years at least'

By HU YUANYUAN (chinadaily.com.cn) Updated: 2012-12-04 17:12

China should be able to grow at 7 percent for five years, possibly longer, by developing its own backyard, Standard Chartered said in a report on Tuesday.

"We work out how much growth would be generated if the poor parts of China caught up with today's rich parts. Simple mathematics suggests that a sustained 7 percent rate of growth for at least five more years is a reasonable expectation," said Stephen Green, an economist with Standard Chartered.

And we see no serious barriers to people in poorer provinces moving into urban areas, becoming more productive, being paid more, becoming consumers and generating a larger services sector in their areas, Green added.

Services, the next growth driver, account for only 37 percent of GDP in third-tier cities, compared with 61 percent in first-tier cities. Sixty-three percent of China's population live in third-tier cities, the research showed.

huyuanyuan@chinadaily.com.cn

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