Smits, KarlisHu, BingjieLuo, BinglieOllero, TonyVashakmadze, EkaterineRohland, KlausShetty, SudhirHoftman, BertGoh, Chorching2015-07-072015-07-072014-06https://hdl.handle.net/10986/22108Chinas 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.en-USCC BY 3.0 IGOACCUMULATION OF DEBTAGRICULTUREANNUAL GROWTHARREARSASSET PORTFOLIOSASSET VALUESASSETSBALANCE OF PAYMENTSBALANCE SHEETSBANK DEBTBANK LOANBANK LOANSBANKING SYSTEMBANKING UNIONBONDBOND MARKETSBONDSBROAD MONEYBUFFERSCAPACITY BUILDINGCAPITAL ACCOUNTCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETSCAPITAL STOCKCENTRAL BANKCOMPARATIVE ADVANTAGECOMPETITIVENESSCONSUMER GOODSCONSUMER PRICE INDEXCONSUMERSCONSUMPTION EXPENDITURECONSUMPTION EXPENDITURESCONSUMPTION GROWTHCONSUMPTION INCREASESCONSUMPTION LEVELSCONTINGENT LIABILITIESCORPORATE BONDSCORPORATE DEBTCREDIT EXPANSIONCREDIT GROWTHCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT SURPLUSCUSTOMS DUTIESDEBTDEBT BURDENSDEBT MANAGEMENTDEBT PER CAPITADEBT RATIOSDEBT STOCKDEBT-SERVICEDECLINE IN INVESTMENTDEMAND GROWTHDEVELOPING COUNTRYDEVELOPMENT BANKDISPOSABLE INCOMEDISTORTIONSDOMESTIC DEMANDDOMESTIC ECONOMIC ACTIVITYDOMESTIC SAVINGSDRAG ON GROWTHECONOMIC ACTIVITYECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC DEVELOPMENTSECONOMIC EFFICIENCYECONOMIC GROWTHECONOMIC INEFFICIENCYECONOMIC OUTLOOKECONOMIES OF SCALEELASTICITYENTRY BARRIERSEXCESS SUPPLYEXCHANGE RATEEXPENDITUREEXPORT GROWTHEXPORTEREXTERNAL BALANCEEXTERNAL DEBTEXTERNAL DEMANDEXTERNAL POSITIONFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL MARKETSFINANCIAL RISKSFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL SYSTEMFISCAL DEFICITFISCAL DISCIPLINEFISCAL POLICYFIXED ASSETFIXED CAPITALFOOD PRICESFOREIGN CURRENCIESFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN INVESTMENTFULL EMPLOYMENTGDPGDP PER CAPITAGLOBAL MARKETGLOBAL TRADEGOVERNMENT BORROWINGGOVERNMENT DEBTGOVERNMENT EXPENDITURESGOVERNMENT FINANCINGGOVERNMENT INTERVENTIONSGOVERNMENT REVENUESGROSS CAPITAL FORMATIONGROSS FIXED CAPITAL FORMATIONGROWTH RATEGROWTH RATESHIGH-INCOME COUNTRIESHOUSEHOLD INCOMESHUMAN CAPITALIMBALANCESIMPLICIT GOVERNMENT GUARANTEESIMPLICIT GUARANTEESIMPORTSINCOMEINCOME GROUPSINCOME GROWTHINCOME LEVELSINCOME TAXINDEBTEDNESSINDUSTRIALIZATIONINFLATIONINFLATIONARY PRESSURESINFRASTRUCTURE INVESTMENTINTEREST PAYMENTSINTEREST RATEINTEREST RATESINTERNATIONAL MARKETINTERNATIONAL TRADEINVESTINGINVESTMENT SPENDINGLABOR MARKETLABOR MARKETSLENDING PRACTICESLIQUIDITYLIQUIDITY CONDITIONSLIQUIDITY MANAGEMENTLOCAL GOVERNMENTLOCAL GOVERNMENTSM2MACROECONOMIC POLICIESMARGINAL PRODUCTMARKET ACCESSMARKET CONDITIONSMARKET DYNAMICSMARKET ECONOMYMARKET FORCESMARKET REFORMSMEASURE OF INVESTMENTMONETARY POLICIESMONETARY POLICYNET EXPORTSNONPERFORMING LOANSOPEN MARKETOPEN MARKET OPERATIONSOPTIMIZATIONOUTSTANDING BANK LOANSPORTFOLIOPORTFOLIO INVESTMENTSPRICE CHANGESPRICE INCREASESPRICE RISKSPRIVATE INVESTMENTPRODUCTIVITYPRODUCTIVITY GROWTHPRODUCTIVITY INCREASESPUBLIC DEBTPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC SECTOR DEBTPUBLIC SPENDINGPURCHASING POWERREAL ESTATE INVESTMENTREAL ESTATE INVESTMENTSREAL GDPREAL INCOMEREGISTRATION SYSTEMREPAYMENTRESERVERESERVE REQUIREMENTSRETURNRETURNSSAFETY NETSECTOR REFORMSSHORT MATURITIESSHORTFALLSSLOWDOWNSOFT BUDGET CONSTRAINTSSPECULATIVE CAPITAL INFLOWSSPOT RATESTABLE GROWTHSTATE BANKSSUPPLY CONSTRAINTSSUPPLY SIDESURPLUSESTAXTAX COLLECTIONTAX INCENTIVESTAX POLICIESTAX REVENUESTELECOMMUNICATIONSTIGHT PEGTRADE BALANCETRADE DATATRADE DEFICITTRADE LIBERALIZATIONTRADE NEGOTIATIONSTRADINGTRANSFER PAYMENTSTRANSPARENCYTREASURYTREASURY BONDSUNEMPLOYMENTVALUE ADDEDWAGESWARRANTSWEAK DEMANDReportWorld Bank10.1596/22108