Date
30 May 2017
Economists say actual growth is probably one or two percentage points below the official figure. Photo: Bloomberg
Economists say actual growth is probably one or two percentage points below the official figure. Photo: Bloomberg

Economists voice doubts over China GDP growth data

Economists have voiced skepticism over China’s rosier than expected economic report, which puts GDP growth in the third quarter at 6.9 percent.

They said the headline figure does not seem to jibe with underlying data, particularly the decline in exports and imports as well as the weaker than expected industrial production for the period, the Wall Street Journal reported.

Actual growth is probably one or two percentage points below the official figure, the economists said.

They also noted that factory prices have fallen for 43 straight months and fixed asset investment slowed in September, despite a surge in government infrastructure spending, the newspaper said.

September retail sales and services were stable while new loans data indicates a pickup in demand, but these figures pale when compared with other negative data, the economists said.

“When you look at the numbers, it’s not entirely easy to see how GDP growth held up so well,” Société Générale CIB economist Klaus Baader was quoted as saying.

Beijing is under increasing pressure to meet this year’s growth target of about 7 percent, which already would be its slowest pace in a quarter century, the report said.

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