TY - BOOK ID - 101239534 TI - Rebalancing in China—Progress and Prospects PY - 2016 SN - 1475533004 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Economic development KW - Income distribution KW - Sustainable development KW - Macroeconomics KW - Money and Monetary Policy KW - Industries: Service KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Investment KW - Capital KW - Intangible Capital KW - Capacity KW - Macroeconomics: Production KW - Aggregate Factor Income Distribution KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Industry Studies: Services: General KW - Monetary economics KW - Credit KW - Services sector KW - Consumption KW - Income KW - Money KW - Economic sectors KW - National accounts KW - Service industries KW - Economics KW - China, People's Republic of UR - https://www.unicat.be/uniCat?func=search&query=sysid:101239534 AB - 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. External rebalancing has advanced well, while progress on internal rebalancing has been mixed, with substantial progress on the supply side, moderate progress on the demand side, and limited progress on the credit side. Rebalancing on income equality and environment has also been mixed, with the energy intensity of growth falling and labor’s share of income rising, but income inequality and local air pollution remaining very high. Going forward, the high national saving is expected to fall owing to demographic change and a stronger social safety net, while the investment ratio is expected to fall similarly, with increasing competition and profit normalization as growth slows. 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. Reducing the credit intensity of growth is likely to progress slowly unless decisive corporate restructuring and SOE reforms are implemented. ER -