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 …

rebalancing of domestic demand in China. …This paper studies structural changes underlying China's remarkable and unprecedented growth in recent years. While … patterns of structural transformation across China's provinces are broadly in line with international experience, one important …

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 …

. We find that lower trading partner demand was a key external factor in explaining these events during 2011–13, and that … effect of the weaker external demand. Idiosyncratic factors, such as structural bottlenecks with the potential to impair …

-than-expected growth in China represents a key downside risk. The results caution against trying to offset the current economic slowdown … with demand-side stimulus and underscore the need for ambitious structural reforms to secure strong growth over the medium …

strongest driver of this shift. Much of this impact unfolds through aggregate demand impulse from trade. As fiscal policy …