China at the end of the 12th Five-Year Plan

Moving to the end of a difficult year for China's economy and the end of China's 12th Five-Year Plan (2011-15), three questions are on many people's minds: What is the outlook for economic growth, what has been the performance in terms of the objectives of the 12th Five-Year Plan and what does this mean for economic policy?

China's stock market volatility and the August exchange rate move scared financial markets globally. However, changes in the dynamics in the real economy in recent months have been less drastic than the financial turbulence suggests.

Nonetheless, downward pressures on growth persist as the real estate downturn continues to weigh on China's economy. Housing sales have recovered. But, amid still high inventories of unsold housing, housing construction remains in the doldrums.