Moderating Growth and Structural Change in the People's Republic of China: Implications for Developing Asia and Beyond

Publication | March 2016

The gradual moderation in growth currently underway in the People’s Republic of China presents both challenges and opportunities for developing Asia, while concerns over a sharp slowdown in the near term are exaggerated.

A gradual moderation in growth is currently underway in the People’s Republic of China (PRC). This is the result of a combination of factors, including a shrinking working-age population, the natural process of convergence and rising labor costs, and a structural shift toward consumption-led growth partly encouraged by government. It also reflects continued weakness in external demand and the working out of overcapacity in some sectors.

Key Messages

  • A gradual moderation in growth is currently underway in the PRC.
  • The decline in PRC growth is expected to reduce gross domestic product (GDP) growth in the rest of developing Asia by about a third of a percentage point per year over the next 2 years.
  • The share of the commodity price decline explained by moderating PRC growth varies widely by commodity.
  • PRC’s growth moderation and structural transformation present both challenges and opportunities.

Additional Details

  • Economics
  • Industry and trade
  • Social development and protection
  • Social protection - labor and employment
  • China, People's Republic of
  • 8
  • 8.5 x 11
  • ABF167930-2
  • 978-92-9257-368-3 (Print)
  • 978-92-9257-369-0 (e-ISBN)
  • ISSN 2071-7202 (Print)
  • 2218-2675 (e-ISSN)

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