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Tuesday, August 25, 2015

An interesting article on China and its GDP..

http://thediplomat.com/2015/08/are-chinas-gdp-numbers-believable/

Last week, Forbes ran a piece by hedge fund manager Jay Somaney, who argued that China’s growth is significantly lower. Somaney cited as evidence data points from the precipitous drop in the Chinese stock market and an 8.3 percent drop in exports to a glut in the country’s real estate market and the devaluation of the renminbi (RMB) by Chinese monetary authorities. Ivan Glasenberg, CEO of the commodity trading and mining firm, Glencore, speculated that China’s crackdown on corruption has stalled infrastructure projects, slowing growth well below 7 percent. As this piece was written, the median estimate of 11 economists surveyed by Bloomberg put China’s GDP at 6.3 percent.
But noted China pundit and author, Gordon Chang, has been expressing stronger skepticism for months. Chang was recently in Hong Kong, where he says he spoke with “an individual very close to influential people in Beijing.”

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