BEIJING: China's urbanisation could cure its economic imbalances, a new study shows, putting it on a path to domestic consumption-led growth within five years to replace three decades of investment and export-driven development that stoked global trade tensions.
The report by consultants at McKinsey comes as International Monetary Fund (IMF) models show China's current account surplus remains too big, despite a narrowing of global imbalances in the wake of the 2008/09 financial crisis and which IMF officials say could swell again as world economic growth recovers.