News Content
China GDP up 6.7pc, but experts say same quarterly gains 'implausible'
THE Chinese economy expanded at an annual rate of 6.7 per cent in the third quarter, but economists questioned the reliability of Chinese statistics.
Economists say it is rare for a fast-growing economy to clock the same growth quarter after quarter.
"It's quite implausible that growth would be 6.7 per cent for three straight quarters," Capital Economics economist Julian Evans-Pritchard told the Wall Street Journal.
In China, it happens because Beijing sets a hard economic target - 6.5 to seven per cent this year - then does what it takes to reach this level, whether through fiscal stimulus, arm twisting of state companies or creative accounting, these people say.
The International Monetary Fund and numerous economists have urged Beijing to scrap that system, saying it leads to excessive fiscal stimulus that fuels manufacturing overcapacity and debt.
The stated increase was in line with the government's full-year target, but exacerbated fears of inflated corporate debt levels and overheated property markets.
Many analysts believe this year's better than expected growth in China has been the byproduct of a dangerous expansion in credit, especially for real estate developments and state-backed infrastructure projects.
"Credit growth continues to outstrip nominal GDP growth, building on an already enormous base of outstanding debt," said Eswar Prasad, a China finance expert at Cornell University to the Financial Times.
Economists say it is rare for a fast-growing economy to clock the same growth quarter after quarter.
"It's quite implausible that growth would be 6.7 per cent for three straight quarters," Capital Economics economist Julian Evans-Pritchard told the Wall Street Journal.
In China, it happens because Beijing sets a hard economic target - 6.5 to seven per cent this year - then does what it takes to reach this level, whether through fiscal stimulus, arm twisting of state companies or creative accounting, these people say.
The International Monetary Fund and numerous economists have urged Beijing to scrap that system, saying it leads to excessive fiscal stimulus that fuels manufacturing overcapacity and debt.
The stated increase was in line with the government's full-year target, but exacerbated fears of inflated corporate debt levels and overheated property markets.
Many analysts believe this year's better than expected growth in China has been the byproduct of a dangerous expansion in credit, especially for real estate developments and state-backed infrastructure projects.
"Credit growth continues to outstrip nominal GDP growth, building on an already enormous base of outstanding debt," said Eswar Prasad, a China finance expert at Cornell University to the Financial Times.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
