{
  "title": "Rebalancing in China—Progress and Prospects",
  "publication": "IMF Working Papers, September 6, 2016",
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  "summary": "China is transitioning to a greener, more inclusive, more consumer and service based, and less credit-driven economy. This paper defines a framework for assessing rebalancing, reviews progress, and discusses medium-term prospects.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- China is transitioning to a greener, more inclusive, more consumer and service based, and less credit-driven economy.\n- This paper defines a framework for assessing rebalancing, reviews progress, and discusses medium-term prospects.\n- Publication date: September 6, 2016.\n- Pages: 22. Volume: 2016. Issue: 183. Series: Working Paper No. 2016/183.\n- DOI: https://doi.org/10.5089/9781475532937.001. ISBN: 9781475532937. ISSN: 1018-5941."
    },
    {
      "heading": "Progress on Rebalancing",
      "content": "- External rebalancing:\n  - Has advanced well.\n- Internal rebalancing:\n  - Progress has been mixed.\n  - Supply side: substantial progress.\n  - Demand side: moderate progress.\n  - Credit side: limited progress."
    },
    {
      "heading": "Income and Environment Outcomes",
      "content": "- Energy and carbon intensity:\n  - The energy intensity of growth is falling.\n- Labor and income:\n  - Labor’s share of income is rising.\n- Remaining challenges:\n  - Income inequality remains very high.\n  - Local air pollution remains very high."
    },
    {
      "heading": "Medium-term Prospects and Key Projections",
      "content": "- National saving and investment:\n  - The high national saving is expected to fall owing to demographic change and a stronger social safety net.\n  - The investment ratio is expected to fall similarly, with increasing competition and profit normalization as growth slows.\n- Sectoral composition:\n  - The service sector will continue to gain importance, helping reduce the carbon intensity of output and increase labor’s share of national income and household consumption.\n- Credit intensity:\n  - Reducing the credit intensity of growth is likely to progress slowly unless decisive corporate restructuring and SOE reforms are implemented."
    },
    {
      "heading": "Policy Implications and Recommendations",
      "content": "- Strengthen social safety net to support a decline in national saving.\n- Encourage competition and profit normalization to allow the investment ratio to fall in line with lower saving.\n- Facilitate service sector expansion to reduce carbon intensity and boost labor’s income share and household consumption.\n- Implement decisive corporate restructuring and state-owned enterprise (SOE) reforms to accelerate reduction in the credit intensity of growth."
    },
    {
      "heading": "Subjects and Keywords",
      "content": "- Subjects: Consumption, Credit, Economic sectors, Income, Income distribution, Money, National accounts, Services sector.\n- Keywords: China, Consumption, Credit, GDP, GDP ratio, Global, government saving, household savings, Income, income convergence, Income distribution, investment ratio, Rebalancing, saving rate, service sector productivity growth, service sector share, Services sector, WP.\n\nSource: IMF Working Paper \"Rebalancing in China—Progress and Prospects\", Longmei Zhang, September 6, 2016. DOI: https://doi.org/10.5089/9781475532937.001\n\n---\n\n Content in this bundle\n\n- Rebalancing in China––Progress and Prospects\n  - Rebalancing in China––Progress and Prospects (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Rebalancing in China––Progress and Prospects (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/rebalancing-in-china-progress-and-prospects-44225"
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    "Authors: Longmei Zhang",
    "Published: September 6, 2016",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475532937.001",
    "China is transitioning to a greener, more inclusive, more consumer and service based, and less credit-driven economy.",
    "This paper defines a framework for assessing rebalancing, reviews progress, and discusses medium-term prospects.",
    "Publication date: September 6, 2016.",
    "Pages: 22. Volume: 2016. Issue: 183. Series: Working Paper No. 2016/183.",
    "DOI: https://doi.org/10.5089/9781475532937.001. ISBN: 9781475532937. ISSN: 1018-5941.",
    "External rebalancing:",
    "Internal rebalancing:",
    "Energy and carbon intensity:",
    "Labor and income:",
    "Remaining challenges:",
    "National saving and investment:",
    "Sectoral composition:",
    "Credit intensity:",
    "Strengthen social safety net to support a decline in national saving.",
    "Encourage competition and profit normalization to allow the investment ratio to fall in line with lower saving.",
    "Facilitate service sector expansion to reduce carbon intensity and boost labor’s income share and household consumption.",
    "Implement decisive corporate restructuring and state-owned enterprise (SOE) reforms to accelerate reduction in the credit intensity of growth.",
    "Subjects: Consumption, Credit, Economic sectors, Income, Income distribution, Money, National accounts, Services sector.",
    "Keywords: China, Consumption, Credit, GDP, GDP ratio, Global, government saving, household savings, Income, income convergence, Income distribution, investment ratio, Rebalancing, saving rate, service sector productivity growth, service sector share, Services sector, WP.",
    "**Rebalancing in China––Progress and Prospects**"
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