China Center Chart of the Week: Economic rebalancing is going in reverse
This chart breaks down of China’s annual GDP growth into its constituent parts from the expenditure side (i.e., investment, consumption, government spending, and net exports). China Center members and other China watchers are well aware of these breakdowns, which are the major concern when discussing the imbalances in Chinese economic growth. More important (and more concerning) is the fact that China’s internal rebalancing went into reverse in 2013 for the first time in four years. More strikingly, the boost in capital formation’s share of economic growth occurred even as topline GDP remained flat in 2013.