Flows are also becoming more balanced: the current account surplus last year was slightly over 2% of GDP, a far cry from the surplus of more than 10% recorded in 2007. In addition, since 2012, investment coming from China has caught up with investment flowing into China, accounting for 15% and 17% of GDP respectively.
Market-based financial systems contain new risks and uncertainties when compared to tightly controlled systems. The behavior of financial institutions in a liberalization process involves major challenges as the market participants learn to understand their new operational environment.