http://www.economist.com/news/finance-and-economics/21599051-chinas-official-figures-both-understate-and-overstate-inflation-alternative-view
This article provides an alternate view on the view of China's economy as continually strong and growing. The article provides the statistics that everyone has heard about the growth of GDP in 2013. But then discusses the declining house prices and the weak exports. The article states, "Forecasters expected industrial output to grow by 9.5% in the first two months of 2014, compared with a year earlier; it grew by only 8.6%." The article then discusses an important aspect of the Chinese economy: inflation. Is inflation significant? Does China realize this negative of their economy?
2 comments:
It seems as if China is really starting to hit the down side of their business cycle. Not only are they seeing a decrease in housing prices and weak exports but their manufacturing industry - something they really got them going - has seen contraction for the fifth straight month. It will be interesting to see what steps they take to try and counter act some of these pitfalls.
I agree with Jack. The fact that they were below their prediction for the start of 2014, suggests there is an overarching decline that is about to be confronted by China. I am curious as to what China will choose to do to battle their declining inflation and how the economy will react. Will China continue to slip? Or will they regain strength and grow in the coming months?
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