China’s surplus of low-cost workers will run out between 2020 and 2025, forcing a change in the nation’s growth structure, Bloomberg reported, citing a report released by the IMF. China will hit the Lewis Turning Point by 2025, at which point low-cost manufacturing industries become less competitive, accelerating a change in the country’s economic drivers, a paper released this week by IMF economists Mitali Das and Papa N’Diaye said. As this point is reached, China could allow deposit rates to increase, loosen the one-child policy and rely more on consumer driven growth and less on investment, the IMF researchers argue.
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