China's Economy in Transition: From External to Internal Rebalancing
Business & Finance, Economics, Public Finance, Finance & Investing, Banks & Banking, Macroeconomics
| Author: | Anoop Mr. Singh, Malhar Mr. Nabar, Papa M Mr. N'Diaye | ISBN: | 9781484321935 |
| Publisher: | INTERNATIONAL MONETARY FUND | Publication: | November 7, 2013 |
| Imprint: | INTERNATIONAL MONETARY FUND | Language: | English |
| Author: | Anoop Mr. Singh, Malhar Mr. Nabar, Papa M Mr. N'Diaye |
| ISBN: | 9781484321935 |
| Publisher: | INTERNATIONAL MONETARY FUND |
| Publication: | November 7, 2013 |
| Imprint: | INTERNATIONAL MONETARY FUND |
| Language: | English |
Chinas current account surplus has declined to around one-quarter the peak reached before the global financial crisis. While this is a major reduction in Chinas external imbalance, it has not been accompanied by a decisive shift toward consumption-based growth. Instead, the compression in its external surplus has been accomplished through increasing fixed investment so that it is now an even higher share of Chinas national economy. This increasing reliance on fixed investment as the main driver of Chinas growth raises questions about the durability of the compression in the external surplus and the sustainability of the current growth model that has had unprecedented success in lifting about 500 million people out of poverty over the last three decades. This volume examines various aspects of the rebalancing process underway in China, highlighting policy lessons for achieving stable, sustainable, and inclusive growth.
Chinas current account surplus has declined to around one-quarter the peak reached before the global financial crisis. While this is a major reduction in Chinas external imbalance, it has not been accompanied by a decisive shift toward consumption-based growth. Instead, the compression in its external surplus has been accomplished through increasing fixed investment so that it is now an even higher share of Chinas national economy. This increasing reliance on fixed investment as the main driver of Chinas growth raises questions about the durability of the compression in the external surplus and the sustainability of the current growth model that has had unprecedented success in lifting about 500 million people out of poverty over the last three decades. This volume examines various aspects of the rebalancing process underway in China, highlighting policy lessons for achieving stable, sustainable, and inclusive growth.
