Double-digit GDP growth year in and out? I’ve never met a credible economist who believed that China’s spectacular GDP growth figures could be taken at face value. Simply put, the numbers have never added up. The smart economists tend to look at other indicators to give a a better idea of what is really going on.
On that note, the next time somebody tells you, “Who cares if China GDP growth is slowing, they’re still growing much faster than the west” you should point them to the latest figures on electricity production. Electricity production in in China in November fell 9.5%, more than in October, which had marked the first fall in a decade.
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December 24, 2008 at 10:03 am
MAdams
China is in the best position of just about any country to come out of this global recession. At the end of November, the stock market was down more than 50%. It has rebounded since then. But GDP growth in China will probably be the highest in the world among the major economies in 2009.
China still has over $2 trillion in reserves. The stimulus package they’ve announced on a relative basis is four times what’s been done in the U.S.