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Originally Posted by vtrader Writing this from Narita on a 5 hour (ugh!) layover. The headline on the SCMP today was that China understated it's GDP by $300 BILLION.
Two things come to mind: they need new economists and accountants and secondly the economy is rockin'! |
Frankly, the problem is that things are developing at such a rate all figures are purely indicative. However, economic management is not such a problem as whatever the money supply labour cost are going to remain very low for the forseeable future, so the control of the money supply there is not that critical.
The 9% growth rate does not state the clear picture as when an economy catches up like many have done so before, the internal growth figures are supplemented by currency appreciation. China's real growth rate in dollar terms would be closer to 20% if the Yuan were allowed to appreciate. There is so much foriegn exchange going into China it must be getting hard to buy Yuan at all!
Best Regards
Dave Wrixon