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World Bank Quarterly December 2008
The document provides an overview of recent economic developments in China and the expected impact of the global financial crisis. It summarizes that: 1) While China's financial system has been relatively insulated so far, the real economy is slowing down significantly as exports begin to weaken with the global downturn. 2) Domestic investment and industrial growth have already declined in 2008 in response to earlier monetary tightening. 3) The government has adopted a more stimulative policy approach and higher government spending will play a key role in supporting growth in 2009, with the goal of rebalancing the economy over the long run.
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