Gold demand in China, which overtook India as the largest user last year, will rise about 25 percent in the next four years as an increasing population gets wealthier, according to the World Gold Council.

Consumer demand will expand to at least 1,350 metric tons by 2017, the London-based council said in a report Tuesday. Growth may be limited this year after 2013’s price decline spurred consumers to do more buying last year, it said. China accounted for about 28 percent of global usage last year, the council estimated in February.

Buying accelerated last year as prices slumped 28 percent, the most since 1981, and the nation became the top buyer in place of India, where import restrictions curbed demand. China’s economy will expand 7.4 percent this year, economists surveyed by Bloomberg estimate. While that’s set to be the least since 1990, it’s still more than double expected growth in the U.S.

“Whilst China faces important challenges as it seeks to sustain economic growth and liberalize its financial system, growth in personal incomes and the public’s pool of savings should support a medium-term increase in the demand for gold, in both jewelry and investment,” Albert Cheng, Far East managing director at the council, said in a statement accompanying the report.

Gold for immediate delivery climbed 10 percent to $1,325.84 an ounce this year by 3:17 p.m. in London Monday, according to Bloomberg generic pricing. The metal slipped to an almost three-year low of $1,180.57 in June, extending a drop from a record $1,921.17 set in September 2011. (Bloomberg)