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Beijing: China
could become the world's largest economy by 2016 if it fully
implements a series of regulatory, market, socio-economic and tax
reforms, the Organization for Economic Cooperation and Development
said.
In the presentation here Friday of its latest Economic Survey of
China, the OECD forecast that the Asian giant's economy will grow
by 8.5 percent this year and 8.9 percent in 2014, higher than most
analysts' expectations.
The main short-term risks to the world's second-largest economy,
according to the OECD, are weak external demand and inflation,
which has risen since the start of the year.
Economic policy changes, which the OECD deems essential to
guarantee sustained growth, are already been carried out by the
new government, the organization's secretary-general, Angel Gurria,
said.
The country is becoming less and less dependent on exports and
consumption has recently been a bigger driver of growth than
investment, he added.
These changes, along with several still-pending pro-market
reforms, are the main ingredients required for China to make the
leap to developed-country status, analysts say.
The OECD report expressed optimism about the political will of
China's new leaders, President Xi Jinping and Prime Minister Li
Keqiang, to implement the needed reforms.
China's economy grew at a 7.8 percent clip in 2012, its slowest
pace in more than a decade, mainly due to the economic problems of
the European Union and the US, its two largest trading partners.
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