Publication: China Economic Update, June 2014
Date
2014-06
ISSN
Published
2014-06
Author(s)
Smits, Karlis
Hu, Bingjie
Luo, Binglie
Ollero, Tony
Vashakmadze, Ekaterine
Rohland, Klaus
Hoftman, Bert
Goh, Chorching
Abstract
Chinas economic growth is gradually
slowing as the structural transformation of the economy
continues. Output grew by 7.7 percent in 2013, matching its
2012 growth rate and exceeding the governments 7.5 percent
indicative target. In recent months economic activity,
including industrial production, started to show signs of
acceleration. The recent acceleration, expected to continue
into the next two quarters, is partly reflecting the effect
of new growth-supporting measures, robust consumption, and a
recovery of external demand. Chinas growth will continue to
moderate over the medium term, and the structural shifts
will become more evident. Growth in China is expected to
decrease marginally to 7.6 percent in 2014 and 7.5 percent
in 2015, from 7.7 percent in 2013. Fiscal and financial
sector reforms are needed to address financial stability
risks in the medium run. The first task involves effectively
managing the process of rapid credit growth, including less
well-regulated shadow banking system. The second involves
gradual and orderly deleveraging of large stock of local
government debt accumulated through off-budget and
quasi-fiscal platforms.
Citation
“Smits, Karlis; Hu, Bingjie; Luo, Binglie; Ollero, Tony; Vashakmadze, Ekaterine; Rohland, Klaus; Shetty, Sudhir; Hoftman, Bert; Goh, Chorching. 2014. China Economic Update, June 2014. China economic update;. © World Bank, Beijing. http://openknowledge.worldbank.org/handle/10986/22108 License: CC BY 3.0 IGO.”