Chanakya's_Chant
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hahaha $8.5 trillions economy 8.5% gdp vs a pathetic 1.9trillion 4.5% gdp which one sound more like a third world sh@t hole you tell me
$8.5 trillion economy!!!! Numbers from the world's second largest economy are treated with skepticism by some economists, but this latest report has attempted to quantify the scale of discrepancy. There is strong evidence indicating that the rate of real Chinese GDP growth, and ultimately total real GDP, may be significantly over stated. Premier Economists across the globe think that China may be exaggerating the size of its economy to the tune of $1 trillion by releasing "willfully fraudulent" inflation and GDP data, and a report out recently also suggests the same.
If inflation data is not accurate, or is willfully fraudulent, as appears to be the case, it will impact many other areas of economic and financial data leading to large disparities over time. Dodgy data may add $1 trillion to Chinese economy...
And secondly 8.5% GDP growth rate???? Even your establishment expects it to be not more than 7.5% this financial year but take a break...can these numbers be trusted??? Beijing has a long tradition of setting and then claiming to exceed high growth targets, which makes growth appear both rapid and stable. For years, China reported much less volatile economic growth than other developing nations, but lately volatility has all but disappeared. Since the start of 2012, China has reported a GDP growth rate within a few decimal points of the official target—every quarter.
Another reason to question these numbers is that China’s second most powerful official has. In a 2007 cable revealed by WikiLeaks in late 2010, Chinese Premier Li Keqiang was quoted acknowledging that official GDP numbers are “man-made.” Mr. Li, who was head of the Communist Party in northeastern Liaoning province at the time, told then-U.S. Ambassador to China Clark Randt that he looked to more reliable numbers—on bank loans, rail cargo and electricity consumption—to get a fix on the actual growth rate.
Some economists now call these economic indicators the “LKQ Index.” That index shows that China’s economic growth was a lot weaker than officially claimed in the first half of 2013 and picked up in the third quarter only on a new round of stimulus to meet the annual GDP target of 7.5%.
Pressure to hit the official target has reached new highs as China’s Communist Party leaders prepare for a critical Central Committee meeting next month. With a per capita income of about $7,000, China has reached the stage of development when even the previous “miracle economies” of East Asia—Japan, Korea and Taiwan—began to slow, from a GDP growth rate near double digits to around 5% to 6%.
The manufacturing share of China’s economy is now 30%—the same as Japan at its 1970 peak. Consumption in China is already growing at 7% to 8%, the maximum rate any miracle economy has achieved. If consumption cannot grow faster, and the current rate of investment is dangerously high, then slower GDP growth is unavoidable.
Beijing’s devotion to hitting a 7.5% growth target is at the heart of China’s problems. That target comes from a rough estimate of the growth rate China needs to double its GDP by the end of this decade. This is a purely political ambition with no basis in economics, reminiscent of the man-made targets that guided the Soviet Union’s effort to catch up to the West. The lesson of that failed Communist experiment is that it would have been better to arrive late than never.
#third world fakehole right???
