FRR 2016 ANNUAL REPORT08

In emerging countries, China s growth faded a little but remains above 6.5% (+6.7% in 2016 after 6.9% in 2015). The world s second biggest economy is facing a number of structural chal- lenges: transforming its investment- and export-driven economy into one fuelled by con-

sumer spending and services (taking its indus- trial base upmarket); production overcapacity; high corporate debt, and a property market showing signs of overheating.

Annual GDP growth in 2015 and 2016

China: annual change in foreign exchange reserves (USD billion)

-4%

-2%

0%

2%

4%

6%

8%

2015 2016

U ni

te d

S ta

te s

E ur

oz on

e

Ja pa

n

U ni

te d

K in

gd om

C hi

na

B ra

zi l

R us

si a

In di

a

-600

-500

-400

-300

-200

-100

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Bloomberg.

Source: Bloomberg.