China<U+0080>́<U+0099>s Macroeconomic Outlook Quarterly Forecast and Analysis Report, February 2014

This book℗ provides key insights into how to control local government debts and optimize the makeup of debts in China. The rapid growth of investment in infrastructure on the part of local governments has offset the slowdown of investment growth in manufacturing and real estate and maintained the growth rate of 7.7% in 2013. However, local governments ́ debts have accumulated, which increases the risk of debt default and threatens the stability of China ́ s financial system. The research suggests that increasing the proportion of issuing bonds in total debts would be the first step toward eliminating the debt risk. Second, the Chinese government should play its part; and lastly, the government should relinquish its administrative control and monopoly in order to allow the service industry to further develop. This book℗l provides key insights into how to control local government debts and optimize the makeup of debts in China. The rapid growth of investment in infrastructure on the part of local governments has offset the slowdown of investment growth in manufacturing and real estate and maintained the growth rate of 7.7% in 2013. However, local governmentsĺl debts have accumulated, which increases the risk of debt default and threatens the stability of Chinaĺls financial system. The research suggests that increasing the proportion of issuing bonds in total debts would be the first step toward eliminating the debt risk. Second, the Chinese government should play its part; and lastly, the government should relinquish its administrative control and monopoly in order to allow the service industry to further develop Front Matter....Pages i-xi Introduction....Pages 1-6 A Review of China’s Economy in 2013....Pages 7-18 Forecast of China’s Economy for 2014–2015....Pages 19-27 Policy Simulation....Pages 29-45 Policy Implications and Recommendations....Pages 47-50 Comments and Discussion....Pages 51-60 A Survey of China’s Macroeconomic Performance in 2014....Pages 61-66