While China忆s economy has achieved remarkable growth with the deepening of China忆s reform and opening up, the income gap is also widening. By constructing the ARIMA model to predict the Gini coefficient in China, the Gini coefficient in 2020 is 0.4716, and the fluctuation tends to be stable in recent years, which indicates that the economic structure of our country tends to improve under the current policy. On the basis of the forecasted results,the panel data of 1998~2020 are selected, and the Gini coefficient term and the square term of Gini coefficient are constructed based on the Kuznets curve. The results show that the influence of income gap on China忆s economic growth presents an "inverted U" structure; urbanization level and trade level have a positive effect on economic
growth; investment in fixed assets and aging level will restrain economic growth. The rationalized and advanced factor allocation will narrow the income gap and have an significant impact on China忆s economic growth.