Thursday, July 16, 2009

Those commies, they know what we don't

"Fueled by an ambitious economic stimulus program and aggressive bank lending, China’s economy grew by 7.9 percent in the second quarter of this year, the government said Thursday, a surprisingly strong showing given the world economic crisis.

The gross domestic product figures, released Thursday morning in Beijing by the National Statistics Bureau, are also surprising given how China’s exports have declined sharply after years of torrid growth." (NY Times)

Read that. 7 point fucking 9 percent growth in the worst global recession since 1930's.

1 comment:

Trent Krupp said...

Chinese economic data is always over stated. Not through normal "tweak the numbers" ways either. They have a command economy, if they want growth, they simply pay for it. The Economist wrote last issue about the there have been lines of ships in Shanghai dumping off iron ore and other commodities even though there was no demand. China can afford to make steel to keep people employed, in fact its necessary in order to prevent unrest and maintain a communist system even as the country's demographics shift from rural/poor to city/middle income.

The fact is, that China's overall economy is hurt relatively more by this crunch than America: Assets have depreciated, and external demand has dived. They have enough in their coffers, though, to keep face and unemployment low.