Moving toward the next Chinese economy
After more than 30 years of extraordinary growth, the Chinese economy is shifting onto a more conventional development path, and a difficult rebalancing is under way, affecting nearly every aspect of the economy.
For starters, China’s current-account surplus has shrunk from its 2007 peak of 10 percent of GDP to just over 2 percent last year — its lowest level in nine years. In the third quarter of 2014, China’s external surplus stood at $81.5 billion and its capital and financial account deficits amounted to $81.6 billion, reflecting a more stable balance of payments.
This shift can partly be explained by the fact that, over the last two years, developed countries have been pursuing re-industrialization to boost their trade competitiveness.… Seguir leyendo »