China's Rebalancing : Recent Progress, Prospects and Policies

While China's growth gathered momentum in 2017, rebalancing was uneven anddecelerated along many dimensions reflecting the temporary factors behind the growthpickup. Going forward, rebalancing is expected to proceed as these temporary factorsrecede, but elevated income inequality and leverage will remain a challenge. Theauthorities are already pursuing several pro-rebalancing policies which could be expandedto support each dimension of rebalancing while reducing trade-offs between them