MercoPress. South Atlantic News Agency

China's GDP per capita expected to climb to 4.000 USD by end of 2010

Because of the world recession the income gap between urban and rural China residents “will widen”

China's GDP per capita is expected to climb to 4,000 US dollars by the end of next year, according to the 2010 social blue book issued Monday, reports Global Times.

According to Li Peilin, director of the Sociology Institute of the Chinese Academy of Social Sciences, which compiled the book, GDP per capita has been growing rapidly in recent years.

“From 1978 to 2000, GDP per capita in China increased from $400 to $800, which took 20 years. When we set the goal in 2000 to build up a well-off society by 2020, the forecast was to double the GDP per capita within 20 years, jumping to more than $3,000 in 2020,” he said.

The report, Society of China: Analysis and Forecast 2010, said rapid economic growth, decline in the new population and appreciation of the Yuan contributed to the acceleration of the growth rate.

GDP per capita in China exceeded 1,000 USD in 2003 and jumped to 3,000 in 2008, so it will approach 4,000 next year, achieving the target ahead of time.

“A 4,000 GDP per capita means an increased strength of domestic capital, which will help the employment of migrant workers and college students,” said Chen Yan, chief writer at Economy magazine.

The blue book also pointed out that the annual income of urban residents could increase by 10% this year but rural residents' income will only increase by 6 to 7%.

“The income of people in rural areas reduced under the influence of financial crisis in 2009. The income gap between urban and rural residents will widen,” Li said.

During the first three quarters, the employment situation remained stable, with 8.15 million more people in urban areas getting jobs. The number is expected to reach 11 million this year. There are 9.15 million registered unemployed urban residents, with an unemployment rate of 4.3%.

Nearly 83% of the Chinese population said they were optimistic about the employment situation in 2010 and the confidence index jumped by 1.3 percentage points compared with last year, according to a survey conducted recently by Beijing-based China Mainland Marketing Research Company.

According to World Bank statistics Gross National Income per capita 2008 was 47.580 US dollars in the US; 45.390 USD in UK; 27.940 USD in NZ; 9.400 USD in Chile; 8.260 USD in Uruguay; in Argentina, 7.200 USD; Brazil, 7.350 USD and Paraguay, 2.180 USD. The same statistics shows China with 2.940 USD in 2008.