Structural Change and Growth in China
ZEW Lectures on Economic PolicyThe slowdown of the Chinese economy is a consequence of structural change and government policy. China is undertaking a significant structural change that leads to increasing shares of consumption and services in the economy. The current government has implemented stringent fiscal and monetary policies aiming to de-lever the economy. Both has lowered the country's growth rates. Looking into the future, China will continue to be a large manufacturing country, possibly replacing Japan and Korea to dominate the eletronic and auto industry. In the meantime, China will become a large market for world products. In the short run, it is expected that the government will exit austerity this year and China may be able to maintain a growth rate similar to that achieved last year.