Bloomberg has reported that the RBA’s Ivan Roberts and Brendan Russell has contributed to a , arguing “China’s period of ‘above-normal’ growth is drawing to a close”.
“This will create challenges for policy makers, as they attempt to foster continued increases in incomes, while forestalling risks arising from high levels of debt.”
China’s annual GDP rose 10.6% in 2010, but has steadily slipped as authorities sought to switch the drivers of growth to consumption from investment.
Given policy makers’ commitment to re-balancing and the difficulties of reversing China’s population dynamic, the RBA economists see greater productivity, particularly through technological innovation, as key to supporting China’s economy.
