China is likely to become a high income country by 2025

Mondo Social Updated on 2024-03-04

The economic growth target set at the beginning of last year was successfully achieved. According to the data released by the National Bureau of Statistics on January 17, preliminary calculations show that the annual GDP in 2023 will be 1260582 billion yuan, an increase of 52%, of which the fourth quarter increased by 52%。

Entry criteria for high-income countries

At the end of June 2023, the World Bank published a new version of the "Country and Regional Classification by Average National Income" based on global economic data for 2022

Low-income countries with a per capita national income equal to or less than US$1,135;

The per capita national income is in the range of 1,136 to 4,465 US dollars, which is a lower-middle-income country;

In the range of US$4,466 to US$13,845, it is an upper-middle-income country;

Countries with a per capita national income of more than $13,845 are considered high-income countries.

"National income" per capita, not "income per capita". This national income (GNI) is also known as GNI, which is the former gross national product, which is very similar to the gross domestic product (GDP) that we often see in **.

According to the World Bank's standards, low-income and high-income countries are judged on GNI per capita. However, since the difference between GDP and GNI in most countries is within 4 percentage points, and GDP values are easier to obtain than GNI. Therefore, when it comes to rough calculations, GDP is often used directly.

Based on the average exchange rate between the renminbi and the U.S. dollar, China's economy will be 178888 in 2023$500 million (17.)89 trillion). Based on 140967 million people, the per capita GDP of Chinese is 1$270,000, slightly lower than the previous year.

So according to the 2023 World Bank release of the high-income country standard 1At 38.45 million US dollars, China has not yet entered a high-income country in 2023. Well, if the Chinese economy remains 5 in the futureWith a growth rate of 2% and a relatively stable RMB exchange rate, China may enter the ranks of high-income countries as early as 2025, thus getting out of the middle-income trap.

China's economy will continue to develop well, expand and strengthen the domestic market, and realize the dual cycle of the economy. We should pay more attention to the fairness of the pie, gradually optimize the income distribution system, and reduce the gap between the rich and the poor in society.

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