China Economic Update, June 2014

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.

Bibliographic Details

Main Authors:	Smits, Karlis, Hu, Bingjie, Luo, Binglie, Ollero, Tony, Vashakmadze, Ekaterine, Rohland, Klaus, Shetty, Sudhir, Hoftman, Bert, Goh, Chorching
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Beijing 2014-06
Subjects:	ACCUMULATION OF DEBT, AGRICULTURE, ANNUAL GROWTH, ARREARS, ASSET PORTFOLIOS, ASSET VALUES, ASSETS, BALANCE OF PAYMENTS, BALANCE SHEETS, BANK DEBT, BANK LOAN, BANK LOANS, BANKING SYSTEM, BANKING UNION, BOND, BOND MARKETS, BONDS, BROAD MONEY, BUFFERS, CAPACITY BUILDING, CAPITAL ACCOUNT, CAPITAL FLOWS, CAPITAL INFLOWS, CAPITAL MARKETS, CAPITAL STOCK, CENTRAL BANK, COMPARATIVE ADVANTAGE, COMPETITIVENESS, CONSUMER GOODS, CONSUMER PRICE INDEX, CONSUMERS, CONSUMPTION EXPENDITURE, CONSUMPTION EXPENDITURES, CONSUMPTION GROWTH, CONSUMPTION INCREASES, CONSUMPTION LEVELS, CONTINGENT LIABILITIES, CORPORATE BONDS, CORPORATE DEBT, CREDIT EXPANSION, CREDIT GROWTH, CURRENCY, CURRENT ACCOUNT, CURRENT ACCOUNT SURPLUS, CUSTOMS DUTIES, DEBT, DEBT BURDENS, DEBT MANAGEMENT, DEBT PER CAPITA, DEBT RATIOS, DEBT STOCK, DEBT-SERVICE, DECLINE IN INVESTMENT, DEMAND GROWTH, DEVELOPING COUNTRY, DEVELOPMENT BANK, DISPOSABLE INCOME, DISTORTIONS, DOMESTIC DEMAND, DOMESTIC ECONOMIC ACTIVITY, DOMESTIC SAVINGS, DRAG ON GROWTH, ECONOMIC ACTIVITY, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ECONOMIC INEFFICIENCY, ECONOMIC OUTLOOK, ECONOMIES OF SCALE, ELASTICITY, ENTRY BARRIERS, EXCESS SUPPLY, EXCHANGE RATE, EXPENDITURE, EXPORT GROWTH, EXPORTER, EXTERNAL BALANCE, EXTERNAL DEBT, EXTERNAL DEMAND, EXTERNAL POSITION, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL MARKETS, FINANCIAL RISKS, FINANCIAL SECTOR, FINANCIAL STABILITY, FINANCIAL SYSTEM, FISCAL DEFICIT, FISCAL DISCIPLINE, FISCAL POLICY, FIXED ASSET, FIXED CAPITAL, FOOD PRICES, FOREIGN CURRENCIES, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, FOREIGN INVESTMENT, FULL EMPLOYMENT, GDP, GDP PER CAPITA, GLOBAL MARKET, GLOBAL TRADE, GOVERNMENT BORROWING, GOVERNMENT DEBT, GOVERNMENT EXPENDITURES, GOVERNMENT FINANCING, GOVERNMENT INTERVENTIONS, GOVERNMENT REVENUES, GROSS CAPITAL FORMATION, GROSS FIXED CAPITAL FORMATION, GROWTH RATE, GROWTH RATES, HIGH-INCOME COUNTRIES, HOUSEHOLD INCOMES, HUMAN CAPITAL, IMBALANCES, IMPLICIT GOVERNMENT GUARANTEES, IMPLICIT GUARANTEES, IMPORTS, INCOME, INCOME GROUPS, INCOME GROWTH, INCOME LEVELS, INCOME TAX, INDEBTEDNESS, INDUSTRIALIZATION, INFLATION, INFLATIONARY PRESSURES, INFRASTRUCTURE INVESTMENT, INTEREST PAYMENTS, INTEREST RATE, INTEREST RATES, INTERNATIONAL MARKET, INTERNATIONAL TRADE, INVESTING, INVESTMENT SPENDING, LABOR MARKET, LABOR MARKETS, LENDING PRACTICES, LIQUIDITY, LIQUIDITY CONDITIONS, LIQUIDITY MANAGEMENT, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, M2, MACROECONOMIC POLICIES, MARGINAL PRODUCT, MARKET ACCESS, MARKET CONDITIONS, MARKET DYNAMICS, MARKET ECONOMY, MARKET FORCES, MARKET REFORMS, MEASURE OF INVESTMENT, MONETARY POLICIES, MONETARY POLICY, NET EXPORTS, NONPERFORMING LOANS, OPEN MARKET, OPEN MARKET OPERATIONS, OPTIMIZATION, OUTSTANDING BANK LOANS, PORTFOLIO, PORTFOLIO INVESTMENTS, PRICE CHANGES, PRICE INCREASES, PRICE RISKS, PRIVATE INVESTMENT, PRODUCTIVITY, PRODUCTIVITY GROWTH, PRODUCTIVITY INCREASES, PUBLIC DEBT, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC SECTOR DEBT, PUBLIC SPENDING, PURCHASING POWER, REAL ESTATE INVESTMENT, REAL ESTATE INVESTMENTS, REAL GDP, REAL INCOME, REGISTRATION SYSTEM, REPAYMENT, RESERVE, RESERVE REQUIREMENTS, RETURN, RETURNS, SAFETY NET, SECTOR REFORMS, SHORT MATURITIES, SHORTFALLS, SLOWDOWN, SOFT BUDGET CONSTRAINTS, SPECULATIVE CAPITAL INFLOWS, SPOT RATE, STABLE GROWTH, STATE BANKS, SUPPLY CONSTRAINTS, SUPPLY SIDE, SURPLUSES, TAX, TAX COLLECTION, TAX INCENTIVES, TAX POLICIES, TAX REVENUES, TELECOMMUNICATIONS, TIGHT PEG, TRADE BALANCE, TRADE DATA, TRADE DEFICIT, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRADING, TRANSFER PAYMENTS, TRANSPARENCY, TREASURY, TREASURY BONDS, UNEMPLOYMENT, VALUE ADDED, WAGES, WARRANTS, WEAK DEMAND,
Online Access:	http://documents.worldbank.org/curated/en/2014/06/19647735/china-economic-update-june-2014 http://hdl.handle.net/10986/22108
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