YEREVAN, November 9. / ARKA /. The combined economic output of China and India will exceed that of the entire OECD bloc (Organization for Economic Cooperation and Development) by 2060, rbc.ru said citing from group’s report, published on Friday.
China, currently the world’s second biggest economy, is forecast to grow at an average pace of 6.6 percent from now till 2030, and 2.3 percent from 2030 to 2060. The projections for India, the 10th largest, are 6.7 percent and 4 percent, respectively, the OECD said.
In comparison, the 34 OECD nations are projected to grow an average of 2.3 percent per year from now till 2030 and 1.7 percent from 2030 to 2060.
“The faster growth rates of China and India imply that their combined GDP (gross domestic product) will exceed that of the major seven (G7) OECD economies by around 2025,” the group said in the report.
“Strikingly, the combined GDP of these two countries will be larger than that of the entire OECD area, based on today’s membership, in 2060, while it currently amounts to only one-third of it.”
Because of this faster economic growth, the two Asian giants will see their per capita income increase more than 7-fold, providing a big lift for the living standards of the average Chinese and Indian, the bloc added. This will be more pronounced in China because of the strong productivity growth and high capital investment compared to India, it added.
Besides investing in education and training, China and India could also implement other policies to try to lift their longer-term economic outlook, according to the OECD. They can speed up financial sector reforms, raise retirement ages so that people work longer, spend more on social protection including healthcare and pension, and provide greater access to private business credit. -0-
