Chinaas current account surplus has declined to around one-quarter the peak reached before the global financial crisis. While this is a major reduction in Chinaas 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 Chinaas national economy. This increasing reliance on fixed investment as the main driver of Chinaas 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.Alla Myrvoda is a Research Analyst in the IMFa#39;s Asia and Pacific Department, covering China, Hong Kong SAR, and Taiwan Province of China. ... His research interests are in financial development, investment, and productivity growth. ... Before this, Mr. Na#39;Diaye worked on the China, Japan, and Malaysia desks at the IMF.
|Title||:||China's Economy in Transition: From External to Internal Rebalancing|
|Author||:||Mr. Anoop Singh, Mr. Malhar Nabar, Mr. Papa M N'Diaye|
|Publisher||:||International Monetary Fund - 2013-11-07|