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China's economic potential jumps to third in world, driven by tech-investment
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CHINA'S economic potential jumped in the past 12 months to the third highest in the world driven by investment in high technology industries, an industry report said today.
China moves up 17 notches this year to be overtaken only by Australia and Chile in an Global Dynamism Index compiled by Grant Thorton, a multinational auditing body.
The index measures business potential of the 60 largest economies based on their economic performance in the past 12 months.
Growth in China's science & technology sector contributed to the surge in ranking as investments in information technology jumped 19 percent in the past 12 months, the report said.
Xu Hua, leading partner of Grant Thornton China, said, "The GDI index in 2013 clearly shows that China's economic environment is improving. Enhancing productivity through scientific innovation plays a crucial role in sustainable development."
China maintains a leading place in terms of labor costs and the speed of economic growth, but paled in business policies and financing environment.
The report also found developed countries have generally moved up this year while BRIC economies, except China, weakened.
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