The Chinese Economy: Transitions and Growth by Barry Naughton

The Chinese Economy: Transitions and Growth Barry Naughton ebook
Page: 504
Format: pdf
Publisher:
ISBN: 0262140950, 9781429455343

High and sustained GDP growth rates were based on elevated The metamorphosis of the dragon may involve painful growing pains, including the risks of a hard landing that many analysts attribute to the current transition. Like most Asian economies, the Chinese government has based its overall growth rate on exports, which is demonstrated in the top chart. The Chinese pattern of rapid growth with structural change has been accompanied by rising economic imbalances, just as the main pillars of growth seem to be gradually weakening. The above chart from the Wall Street Journal highlights the major change that has already taken place in the US economy as it transitions to the New Normal. The slowdown makes this transition all the more urgent, because GDP growth in China's service sector produces more jobs than does the industrial sector. For some countries this drop in growth was temporary. Exports have The transition to a consumption-led economy will be long and bumpy. Growth reaccelerates once the economy works through the transition from the export-driven, manufacturing-heavy model that typically fuels fast early growth. While these high savings have undoubtedly been good for China's economic growth, they have not necessarily been good for the global economy: the excess of domestic savings over investment has fuelled China's current account surpluses and the United States' current account deficits, leading Jane Golley is an economist focused on a range of Chinese transition and development issues and an Adjunct Director of the Australian Centre on China in the World. These platform companies borrowed heavily from banks during the stimulus, financing a rapid build out of infrastructure that helped sustain economic growth despite the ongoing global turmoil.