China to be world’s biggest consumer market by 2016

China will surpass the US as the world’s biggest retail market by 2016 thanks to the country’s growing economy and rising household income, according to PricewaterhouseCoopers PwC.

Global and domestic retailers will continue to bank on China to drive growth in the coming years, the firm said, estimating that retail sales in the country will reach $4.2 trillion by 2016 and that private consumption will make up around 40% of China’s economy.

Based on PwC’s forecast, the proportion of Chinese households earning more than $15,000 a year will increase from roughly 11% in 2011 to 41% in 2016.

China is...