China economy 2015

China economy 2015

Growth is set to soften somewhat in 2018-19, as exports ease and investment slows. The current account surplus is projected to stabilise. Infrastructure investment, a major growth driver in recent years, is projected china economy 2015 slow further amid tightening monetary conditions and a more rigorous approval process for local government investment. The monetary policy stance will remain neutral with a tightening bias, as mitigating financial risks has appropriately become a key policy priority.

Shadow banking activities are increasingly being reined in and credit growth is slowing, while capital outflows moderated in early 2018 following a surge and the exchange rate has stabilised. Since 1949, the Chinese government has been responsible for planning and managing the national economy. Chinese economy began to show massive growth, averaging 10 percent GDP growth over the last 30 years. Economic reforms started with the initial focus on collectivizing agricultural activities in the country. The leaders of the Chinese economy, during the 1970s and 1980s, were trying to change the centre of agriculture from farming to household activities. The reforms also extended to the liberalization of prices, in a gradual manner. The process of fiscal decentralization soon followed.

As part of the reforms, more independence was granted to business enterprises that were owned by the state government. This meant government officials at local levels and managers of various plants had more authority than before. This led to the creation of a number of various types of privately held enterprises within the services sector, as well as the light manufacturing sectors. The banking system was also diversified, and Chinese stock markets started to develop and grow as economic reforms in China took hold. China has adopted a slow but steady method in implementing economic reforms. The latest set of reforms, known as the 12th Five-Year Plan, was adopted in March 2011, emphasising continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future.

Economic Geography China is the 4th largest country in the world, measuring 9,569,901 sq km. The Chinese economy is better understood as a decentralised collection of several regional economies, with large imbalances between the rural and urban population. The three wealthiest and most important economic regions are all on the east coast: the Pearl River Delta close to Hong Kong, The Yangtze River Delta surrounding Shanghai and the Bohai Bay region near Beijing. It is the rapid development of these areas that is expected to have the most significant effect on the Asian regional economy as a whole, and Chinese government policy is designed to remove the obstacles to accelerated growth in these wealthier regions. Over the past two decades however, China has embarked on an ambitious program of expressway network expansion. By facilitating market integration, this program aims both to promote efficiency at the national level and to contribute to the catch-up of lagging inland regions with prosperous Eastern ones.

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