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Thursday, April 16, 2015

China at the Crossroads

The Globalist

China at the Crossroads

By continuing its economic rebalancing, China could increase the scale of its economy by trillions of dollars.
By , April 15, 2015 | http://www.theglobalist.com/china-at-the-crossroads/

Takeaways

  • China's GDP growth has decelerated from 10% to 7%, and will remain at that reduced pace for the foreseeable future.
  • China's economy is in the early stages of a decisive transition to a more sustainable growth path.
  • 45% of China's population lives in rural areas. 20 million people a year move from the countryside to cities.
  • China's urban workforce increased nearly 13.2 million, on average, in 2013-14.
  • Can China's economy grow fast enough to absorb the massive annual inflow of workers from the countryside into cities?
  • China's leadership is aiming to pair slower economic growth with faster employment growth.
China is at a major crossroads on its long journey to economic development. A still sluggish post-crisis global economy is at an equally critical juncture. In an interconnected world, shifts in one economy have important implications for others. The interplay of these challenges could well pose the greatest test for the world economy since the Great Crisis and Recession of 2008-09.
For China, there can be no turning back. Yes, the costs of structural adjustment are taking their toll on the economy. This is not a temporary development – it is likely to persist for years. http://www.theglobalist.com/china-at-the-crossroads/

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