A Rebalancing Chinese Economy

chinese economy

China’s GDP growth reached 7.4% in 2014 (the first time the target was not exceeded). Chinese growth has been slowing, as has investment. This slowdown could reflect the limits put on credit to manage the real estate boom or could actually signal a more structural and long term trend of deceleration. What is not up for debate is the rebalancing taking place in the Chinese economy, with private consumption contributing more to GDP. Rising income and social safety net reform will accelerate this trend, leading to even more consumption and lower savings. As the Chinese population ages, healthcare spending is likely to rise. Download and read the PDF for A Rebalancing Chinese Economy.

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