Opinion | China and India: Struggling to rebalance
China is struggling to manage its structural growth deceleration, while India is struggling to accelerate its trend growth
China and India make up for two contrasting—but fascinating—case studies of economic management in emerging economies. The policy response function in each is understandably tailored to suit its political structure, the economic challenges confronted and the menu of solutions. However, policymakers in both countries are struggling to rapidly rebalance their economies. China, which is demand-constrained, is trying to cushion its structural deceleration, whereas India, which is supply-constrained, is struggling to unlock its potential for higher trend growth.