Understanding China’s unbalanced growth

Understanding China’s unbalanced growth

October, 2013
Yukon Huang
That China’s growth is unbalanced is a fact. Consumption as a share of GDP has declined steadily over the past decade to 35 per cent, while investment as a share of GDP has risen to above 45 per cent — the lowest and the highest rates of any major economy respectively. But are these imbalances a vulnerability — as most observers believe — or a consequence of China’s economic rise, and therefore not inherently problematic?