Economic imbalance can be divided into internal imbalance and external imbalance. Generally, a country's various economic growth indicators, savings liabilities, foreign exchange reserves, international trade balance, etc. are used as the criteria for judging economic imbalance.
2011February 19 G20 Finance Ministers Meeting determined the internal and external indicators of economic imbalance. According to the index analysis, China's economy is in an unbalanced state of economic structure.
The internal indicators that determine the economic imbalance are deficit, debt and private deposits; External imbalance indicators are the total balance of current capital transactions and the real effective exchange rate. This is the global economic imbalance index determined by G20 finance ministers meeting on 20th11February19th. There have been widespread differences around the world about the definition of economic imbalance.
Prior to this, relevant officials of G20 participating member countries used current account balance, influence on exchange rate, foreign exchange reserves and private deposits as evaluation criteria. Because the standard is not comprehensive enough, after repeated discussions, the parties finally reached a compromise and determined the imbalance index, and did not include the most controversial foreign exchange reserves in the index to evaluate the imbalance.