Looming Systemic Risks in the Macroeconomy

China’s economy began to take off at the end of the twentieth century. After entering the WTOWTO in 2001, external demand expanded rapidly. The tradeTrade sector, largely driven by private and foreign-invested enterprises, experienced significant growth while also contributing to a substantial accumulation of savings within the economy. These savings enabled China to overcome the adverse impacts of the 2008 global financial crisisSystemic risk (financial crisis)Financial crisis (systemic risk) through an enormous government infrastructure investmentInvestment program, and by 2010 the country had become the world’s second-largest economy.