By . Alex Finnis for MailOnline . China will overtake America to become the world's biggest economy in just 10 years, according to a report. The U.S. has been the world's economic leader for more than a century, but now, a huge rise in consumer spending in China is expected to see it passed in 2024. Chinese consumer spending is predicted to triple over the next decade, according to an IHS report - increasing from $3.5trillion to $10.5trillion. Scroll down for video . Chinese nominal GDP is predicted to reach $28.3trillion in 2024 thanks to increased consumer spending . This would boost their GDP to $28.3trillion, surpassing the USA's expected $27.4trillion - using today's prices. U.S. GDP is currently still significantly higher than China's - $17.4trillion compared with $10trillion. But with experts predicting China's consumer spending to grow at an average rate of 7.7 per cent per year, things look set to change. Using the same method of measuring as IHS, China was not expected to surpass America until 2028, a Centre for Economics and Business Research report said. Rajiv Biswas, IHS's chief Asia economist, said: 'China's economy is expected to re-balance towards more rapid growth in consumption, which will help the structure of the domestic economy as well as growth for the Asia Pacific (APAC) as a region. 'China's economy will play an even bigger role as a key driver of global trade and investment flows.' If IHS's predictions are correct, China will hold one-fifth of the world's GDP by 2025 - up from 12 per cent today. This surge in Chinese consumer spending will also help other South East Asian countries, as they will benefit from increased trade. While the IHS study says China will take 10 years to overtake the U.S. economy, another method of measuring suggests it may actually happen this year. The IHS report is based on nominal GDP, which does not accurately reflect the cost of living, whereas  the purchasing power parity method (PPP) measures the relative value of different currencies. Although it was not expected to overtake America until 2019 under PPP measurements, China may actually manage it in 2014, according to a World Bank backed report, which measured China's economy to be 87 per cent of the size of America's in 2011. Despite this all sounding like good news for the Chinese,  experts have warned that they need structural reform to make this level of growth more sustainable in the long run. The International monetary Fund (IMF) has advised China to target a safer growth rate of seven per cent in 2015, as without structural reform, growth could slow down dramatically, to as low as 2.5 per cent by 2030. Elsewhere in Asia, the IHS report also expects India's consumer market to grow quickly, and overtake Japan by 2023. By then, the Chinese consumer market is predicted to be three times larger than that of their Japanese neighbours.
IHS report says America will be knocked off its economic perch in 2014 .
Chinese GDP is growing rapidly thanks to a surge in consumer spending .
Nominal GDP predicted to reach $28.3trillion, up from $10trillion .
USA's current GDP is $17.4trillion, and is expected to be $27.4trillion in 2024 .
Chinese consumer spending expected to triple over next decade .
Using different method of measuring, China could surpass USA this year .
But analysts have warned structural reform is needed for them to cope .
By . Alex Finnis for MailOnline . China will overtake America to become the world's biggest economy in just 10 years, according to a report. The U.S. has been the world's economic leader for more than a century, but now, a huge rise in consumer spending in China is expected to see it passed in 2024. Chinese consumer spending is predicted to triple over the next decade, according to an IHS report - increasing from $3.5trillion to $10.5trillion. Scroll down for video . Chinese nominal GDP is predicted to reach $28.3trillion in 2024 thanks to increased consumer spending . This would boost their GDP to $28.3trillion, surpassing the USA's expected $27.4trillion - using today's prices. U.S. GDP is currently still significantly higher than China's - $17.4trillion compared with $10trillion. But with experts predicting China's consumer spending to grow at an average rate of 7.7 per cent per year, things look set to change. Using the same method of measuring as IHS, China was not expected to surpass America until 2028, a Centre for Economics and Business Research report said. Rajiv Biswas, IHS's chief Asia economist, said: 'China's economy is expected to re-balance towards more rapid growth in consumption, which will help the structure of the domestic economy as well as growth for the Asia Pacific (APAC) as a region. 'China's economy will play an even bigger role as a key driver of global trade and investment flows.' If IHS's predictions are correct, China will hold one-fifth of the world's GDP by 2025 - up from 12 per cent today. This surge in Chinese consumer spending will also help other South East Asian countries, as they will benefit from increased trade. While the IHS study says China will take 10 years to overtake the U.S. economy, another method of measuring suggests it may actually happen this year. The IHS report is based on nominal GDP, which does not accurately reflect the cost of living, whereas  the purchasing power parity method (PPP) measures the relative value of different currencies. Although it was not expected to overtake America until 2019 under PPP measurements, China may actually manage it in 2014, according to a World Bank backed report, which measured China's economy to be 87 per cent of the size of America's in 2011. Despite this all sounding like good news for the Chinese, experts have warned that they need structural reform to make this level of growth more sustainable in the long run. The International monetary Fund (IMF) has advised China to target a safer growth rate of seven per cent in 2015, as without structural reform, growth could slow down dramatically, to as low as 2.5 per cent by 2030. Elsewhere in Asia, the IHS report also expects India's consumer market to grow quickly, and overtake Japan by 2023. By then, the Chinese consumer market is predicted to be three times larger than that of their Japanese neighbours.
consumer spending in China is expected to see it passed in 2024. Chinese consumer spending is predicted to triple over the next decade, according to an IHS report - increasing from video . Chinese nominal GDP is predicted to reach $28.3trillion in 2024 thanks to increased - $17.4trillion compared with $10trillion. But surge in Chinese consumer spending will also help U.S. economy, another method of measuring suggests it may actually happen this year. The 2014, according to a World Bank backed report, experts have warned that they need structural without structural reform, growth could slow down consumer market is predicted to be three times