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Frost & Sullivan: China To See Unparalleled Urban Growth With 13 Mega Cities, 4 Mega Regions And 6 Mega Corridors By 2025

HONG KONG, Nov. 5, 2012 /PRNewswire/ -- China is set to become the largest economy in the world by 2025 with a nominal GDP value of US$38 trillion. Fuelled by a strong urbanisation rate, a favourable corporate environment, huge infrastructure investment and the largest working age population, the Chinese economy will finally transform itself from being the manufacturing site of the globe to one of the biggest and largest consumer markets in the entire world.

New analysis from Frost & Sullivan, Mega Trends in China: Macro to Micro Implications of Mega Trends to 2025, has identified over 10 key Mega Trends that will accelerate China's nominal GDP growth rate to around 16 per cent by 2020.

Urbanisation will bring about spatial changes to the country, resulting in the emergence of 13 Mega-cities, 4 Mega-regions, and 6 Mega-corridors in 2025.  The Mega Cities will grow to become the major hubs for commercial and business activity, contributing nearly US$6.24 trillion to China's GDP in 2025.

"By 2025, an estimated 921 million people or 65.4 per cent of China's population, will live in cities, which is about 2.6 times of the United States' total population", says Archana Amarnath, Programme Manager, Visionary Innovation Research Group, Frost & Sullivan.

She also added that the growth in Chinese mega cities will supplement Asia's growing role as the world's financial centre. In fact, by 2020, Hong Kong and Shanghai are expected to occupy two places in top five global financial centres.

In addition to urbanisation, the demographic composition of China will also emerge as a key determinant of the country's growth over the next decade. China will have the largest working age populations of the world. The younger demographic, or Gen Y (15-34 years old), will account for 14.6 per cent (335 million) of China's total population in 2025 adding to the social prowess of entire Asia. China and India combined will have about 37 per cent of the total Gen Y population in 2025.

China's potential workforce will be one of the biggest with 922 million individuals in the working age (15-64 years) category in 2025, which is roughly 22 percent of the potential global workforce (total number of people in the working age category).

The growing majority of urban and young consumers will shape the demands of the future influencing innovation and future products and solution.

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