Income inequality bedevils China despite high GDP growth: WTO

New Delhi, May 22 (UNI) Clocking double-digit growth over the past four years, China has become the world's third largest trader, World Trade Organisation (WTO) said today.

But, the global trade body pointed out that the growth of Chinese economy is mainly driven by exports and investment rather than by consumption.

This is leading to a widening gap between savings and investment reflected in China's growing current account surplus, and rising income inequality despite high GDP growth In a trade review of the world's most populous nation, the global trade body said. ''Structural reforms in China, including trade liberalisation, have resulted in annual real GDP growth rates in excess of 10 per cent over the past four years, rising per-capita income and poverty reduction; making it the world's third largest trader.'' Stating that China's trade regime has continued on a liberalising trend since its previous review in 2006, WTO secretariat said ongoing reform will help it sustain high growth in face of a number of challenges, including various economic imbalances.

The report noted that China has continued to be one of the largest recipients of inward FDI and has become a large provider of outward FDI, reflecting its increasing integration with the global economy.

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