Key Findings
Recent Economic Developments
- The transition to a more moderate—and more balanced—growth trajectory continues
- The aggregate credit impulse moderated despite policy efforts to lower financing costs
- Fiscal policy remains accommodative as quasi-fiscal expenditures tighten
- Decelerating economic activity is affecting wages more than jobs in the urban labor market
- Capital outflows have increased sharply as domestic and external conditions change
Economic Prospects
- China’s growth will keep moderating as the transition to more sustainable growth consolidates
- Balancing reforms and short-term demand management remains a priority in 2015
- The transition to the “new normal” requires a better allocation of credit and indigenous capacity for innovation
Last Updated: Jul 02, 2015