Policy makers need to be more realistic about the prospects for future growth, particularly when it comes to China's demographic challenges.
Earlier this month, the ratings agency Moody’s cut its outlook on China’s sovereign credit rating to negative, citing risks from a deepening property crisis and a prolonged growth slowdown. In fact, Moody’s now predicts that annual economic growth will fall to 4 percent in 2024 and 2025, before slowing further, to 3.8 percent, on average, for the rest of the decade. Potential growth will decline to 3.5 percent by 2030. A major driver of this slowdown will be “weaker demographic
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