Publisher's Synopsis
China's current account surplus has declined to nearly a third of its pre-crisis peak. While this is a major reduction in China's external imbalance, it has not been accompanied by a decisive shift toward consumption-based growth. Instead, the compression in the external surplus has been accomplished through investment rising even higher as a share of the national economy. The increasing reliance on investment as the main driver of China's growth raises questions about how durable the compression in the external surplus will be and whether the current growth model, which has had unprecedented success in lifting about 500 million people out of poverty over the last three decades, is sustainable. This volume will study various aspects of the rebalancing underway in China and highlight policy lessons for achieving a stable, sustainable, and inclusive transformation of the growth model.
