Vincelette, Gallina AndronovaManoel, AlvaroHansson, ArdoKuijs, Louis2012-03-192012-03-192010-09-01https://hdl.handle.net/10986/3918This paper explores how the ongoing crisis, the policy responses to it, and the post-crisis global economy will impact China's medium-term prospects for growth, poverty reduction, and development. The paper reviews China's pre-crisis growth experience, including its relationship to global economic developments. It discusses the pace, composition, sources, and financing of growth during 1995-2007, and the impact of key external and domestic influences. The paper also analyzes the immediate impact of the global crisis on China's economic performance in 2009 and its likely impact in the short run. It then discusses the government's policy response, with a particular focus on the fiscal and monetary stimulus measures. Finally, the paper explores China's medium-term growth prospects in light of the crisis and the key policies for moving to a robust and sustainable growth path post-crisis.CC BY 3.0 IGOACCESS TO FINANCINGACCOUNTINGACCOUNTING FRAMEWORKADVANCED COUNTRIESAGGREGATE DEMANDAGRICULTUREALLOCATION OF CAPITALARREARSASSET PRICESBANK LOANSBANK PORTFOLIOSBANKING SECTORBANKING SYSTEMBANKRUPTCYBASIS POINTSBONDBUDGET DEFICITSCAPITAL ACCOUNTCAPITAL ACCUMULATIONCAPITAL BASESCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETSCENTRAL BANKCOMMERCIAL BANKCOMMERCIAL BANK LENDINGCOMMERCIAL BANKSCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMPETITIVENESSCONSUMER PRICE INDEXCREDIT CEILINGSCREDIT EXPANSIONCREDIT GROWTHCREDIT QUALITYCURRENCYCURRENT ACCOUNT DEFICITSCURRENT ACCOUNT SURPLUSCURRENT ACCOUNT SURPLUSESDEBTDEBT SECURITIESDEBTSDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDISPOSABLE INCOMEDIVIDEND PAYMENTDIVIDENDSDOMESTIC BANKDOMESTIC BANKSDOMESTIC MARKETSECONOMIC COOPERATIONECONOMIC CRISISECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC OUTLOOKECONOMIC PERFORMANCEECONOMIC POLICIESECONOMIC REFORMSECONOMIC RELATIONSECONOMIC STRUCTUREECONOMIC SURVEYSECONOMIES OF SCALEEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSEQUIPMENTEQUITIESEQUITY MARKETEXCHANGE RATEEXCHANGE RATESEXPORT GROWTHEXPORTEREXPORTERSEXPORTSEXTERNAL DEBTFINANCIAL CAPITALFINANCIAL CRISISFINANCIAL INNOVATIONFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL SUPPORTFINANCIAL SYSTEMFISCAL DEFICITFISCAL DISCIPLINEFISCAL POLICIESFISCAL POLICYFIXED ASSETSFLEXIBLE EXCHANGE RATEFOREIGN BANKSFOREIGN CAPITALFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVEFOREIGN EXCHANGE RESERVESFOREIGN INVESTMENTFOREIGN INVESTORSGDPGINI COEFFICIENTGLOBAL ECONOMYGLOBAL MARKETSGLOBAL OUTPUTGLOBAL TRADEGLOBALIZATIONGOVERNMENT BUDGETSGOVERNMENT DEBTSGOVERNMENT EXPENDITUREGOVERNMENT FINANCEGOVERNMENT FINANCESGOVERNMENT INVESTMENTGOVERNMENT REVENUESGOVERNMENT SAVINGGOVERNMENT SPENDINGGOVERNMENT SUPPORTGROSS DOMESTIC PRODUCTGROWTH POTENTIALGROWTH RATEGROWTH RATESHOLDINGSHOUSEHOLD INCOMEHOUSEHOLD INCOMESHOUSEHOLD SAVINGSHUMAN CAPITALHUMAN DEVELOPMENTINCOME INEQUALITIESINCOME INEQUALITYINDUSTRIALIZATIONINFLATIONINFLATION RISKSINFLATIONARY PRESSURESINFRASTRUCTURE INVESTMENTSINSURANCEINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL FINANCEINTERNATIONAL TRADEINVESTMENT FINANCINGINVESTMENT INCOMEINVESTMENT PROJECTSINVESTMENT RATEINVESTMENT RATESINVESTMENT SPENDINGLABOR MARKETLAND REFORMLEGAL FRAMEWORKLENDERLIQUIDITYLOANLOAN RATESLOCAL GOVERNMENTLOCAL GOVERNMENTSLOW INTEREST RATESM1M2MACROECONOMIC MANAGEMENTMACROECONOMIC POLICYMARKET CONDITIONSMARKET SHAREMATURITYMONETARY FUNDMONETARY POLICIESMONETARY POLICYMONEY SUPPLYMORTGAGESMUNICIPAL INVESTMENTNATIONAL SAVINGNET EXPORTSNONPERFORMING LOANSOUTSTANDING BANK LOANSPENSIONPENSIONSPOLICY RESPONSEPOLICY RESPONSESPORTFOLIOPOTENTIAL OUTPUTPRICE INCREASESPRIVATE CAPITALPRIVATE INVESTMENTPRIVATIZATIONPRODUCTION FUNCTIONPRODUCTIVITYPRODUCTIVITY GROWTHPROTECTIONISMPUBLIC DEBTPUBLIC INVESTMENTPUBLIC INVESTMENTSPURCHASING POWERRAPID GROWTHRATES OF RETURNREAL ESTATE INVESTMENTREAL EXCHANGE RATEREAL GDPREPAYMENTRESERVE REQUIREMENTRESERVESRISK PREMIUMSSAFETY NETSSHARE OF INVESTMENTSHARE OF WORLD TRADESKILLED WORKERSSOCIAL SAFETY NETSSTOCK MARKETSSURPLUS LABORSUSTAINABLE GROWTHTAXTAX COLLECTIONSTAX REVENUESTAX SYSTEMTAXATIONTELECOMMUNICATIONSTOTAL FACTOR PRODUCTIVITYTRADE LIBERALIZATIONTRADINGTRANSACTIONURBANIZATIONVALUATIONVALUE ADDEDWAGESWORLD TRADE ORGANIZATIONWorld Bank10.1596/1813-9450-5435