Going for Growth - China

Page 1

ď ź 109

China GDP per capita continued to catch up rapidly with that of the upper half of OECD. The New Era, where more emphasis will be put on the quality instead of the pace of growth, will likely reduce the speed of catch up. The income gap with more advanced countries reflects lower labour productivity as labour participation rates are higher than in OECD countries. Income inequality, measured by the Gini coefficient for disposable income, is well above the OECD average. Moreover, the trend decline in inequality halted recently. Widespread air pollution is a pertinent problem with a large share of population exposed to high particulate matter concentrations. Progress is apparent in all key priority areas identified in Going for Growth 2017. A wave of administrative simplification is sweeping across the country, though progress varies widely across provinces and municipalities. To enhance overall efficiency through a better allocation of resources, the rule of law should be strengthened and a level playing field ensured. A better match between skills and labour market needs would support catching up in productivity. Gradually phasing out implicit guarantees for state-owned enterprises (SOEs) and other public entities would lead to better market selection, and hence lead financial markets to better price risks. Less room for discretionary decisions involving public money and a more redistributive tax-andtransfer system would make growth more inclusive. Growth performance, inequality and environment indicators: China A. Growth Average annual growth rates (%) GDP per capita

2002-08 10.7 0.0 10.8

1

Labour utilisation Labour productivity

2012-18 6.5 -0.3 6.8

Level 2017 46.7 (31.7)*

Annual variation (percentage points)

GHG emissions per capita3 (tonnes of CO2 equivalent)

2015 9.5 (12.3)*

2013-17 -0.1 (0)* Average of levels 2010-2012-2015 9 (12.8)*

GHG emissions per unit of GDP3 (kg of CO2 equivalent per USD)

0.7 (0.3)*

0.8 (0.4)*

3

26.5

25.5

Gini coefficient

Share in global GHG emissions (%) * OECD simple average (weighted average for emissions data)

Gap to the upper half of OECD countries4

Per cent 0 -10

B. Inequality and environment

2

C. The large gaps in GDP per capita and productivity continue to narrow rapidly

-20 -30 -40

-50 -60 -70 -80 -90 -100

GDP per capita

GDP per employee

-110

Source: Panel A: OECD, Economic Outlook and Productivity Databases; Panel B: China National Bureau of Statistics; OECD, Income Distribution and National Accounts Databases; International Energy Agency (IEA), Energy Database; Panel C: OECD, Economic Outlook, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933954743


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.