This staff report on People’s Republic of China 2013 Article IV Consultation highlights macroeconomic developments … and outlook. China has maintained robust growth since the global crisis, but the heavy reliance on credit and investment …

of an emerging real estate bubble. We find that, for China as a whole, the current levels of house prices do not seem …€™ mass-market and luxury segments. Unlike advanced economies before 2007-8, prices have tended to correct frequently in China … China has, and will continue to have,a structural driver. …

vulnerabilities; and how to best manage aggregate demand in this context, as growth is slowing yet risks are still rising. A key … achieve the desired transformation of the economy, but will also be challenging. Demand management. Reining in credit growth … trading partners. However, in the medium term, income and consumption will both be higher—a result that is good for China …

rotation back to domestic demand-led growth, the current account deficit is widening again, while inflation remains above …

1970s, enabling it to escape the middle-income trap. Policies should aim to tackle the weakness of domestic demand and … growth hinders stabilization in household debt and weighs on domestic demand, while services sector productivity is very low. …

contemporaneous correlation between credit and demand, while the empirical link between exports and demand seems slightly weaker. The … results for import demand point to a strong correlation between imports and exports. The export variable is highly significant …