As we meet today, Government is implementing a recovery and transformation programme that is targeted to restore fiscal and debt sustainability, foster growth and rebuild the foreign reserves. It does so in the context of a financial system that features substantial excess liquidity in an environment of weak private sector credit demand and historically low interest rates.
Productivity in China is rising, but so far an even more important part of China’s success story is driven by an astonishing mobilisation of inputs: China’s population is about 1.3 billion people, and there is still a large amount of surplus labour in the rural area. As the Chinese economy is transformed, around 25 million jobs are created every year.