The resilience of China’s economy since the 2008 financial crisis has provided a welcome boost to global demand and substantial progress has been made in rebalancing China’s external accounts. However, according to the latest International Monetary Fund annual report on China’s economy, the pattern of economic activity in the world’s second largest economy has become too reliant on investment and credit, resulting in rising domestic vulnerabilities in the financial sector, local government finances, and real estate.
On September 6, Global Economy and Development and the John L. Thornton China Center at Brookings hosted a discussion on the latest findings from the IMF’s annual report on the Chinese economy. Following a presentation by IMF Deputy Director Markus Rodlauer, David Dollar, senior fellow in the John L. Thornton China Center, and Stephen Roach, senior fellow at the Jackson Institute for Global Affairs at Yale University, provided their thoughts on the report’s recommendations for China to secure a more sustainable economic growth path. Brookings Senior Fellow Eswar Prasad moderated the discussion.