Structural Change and Moderating Growth in the People’s Republic of China: Implications for Developing Asia and Beyond

The paper states that the People’s Republic of China (PRC) is currently undergoing a number of important changes, which have wide-ranging implications for activity in the PRC, the rest of developing Asia, and the world. First, demographic shifts are underway. The growth of the working age population has turned negative, and the sex ratio also peaked in 2011; declines in these key demographic indicators are associated with falling savings and growth rates. Second, there is the ongoing structural shift from industry toward services on the supply side, and from investment to consumption on the demand side