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The New Normal of China's Economy

Updated: 2015-09-07 | By:

The New Normal of China's Economy

The new normal of China's economy is characterized by: (a) a shift from high growth rates to medium-high growth rates; (b) an on-going process of optimizing and upgrading the economic structure, and narrowing the urban-rural gap, with higher personal income as a share of GDP, and an increasing number of people benefiting from economic development; and (c) a transition from growth driven by input and investment to one driven by innovation. This new normal would likely lead to, among others, a sizable increase in real output despite slower growth; more stable growth with a more diversified array of growth drivers; an increasingly optimized and upgraded economic structure, and more predictable development prospects; and a further revitalized market as result of the on-going move to streamline government and delegate authorities.