Chinese Electricity Conclusions Reexamined
By EconMattersChina`s 4th Quarter
China`s
economy grew 7.9% for the fourth quarter of 2012, signaling to some
that China might be rebounding from a two-year downtrend in economic
growth. When it comes to Chinese data though, transparency issues always
rear their ugly head.
As
a result, many analysts look to Electricity usage to confirm the
economic numbers. Many times the electricity numbers are at odds with
the stronger economic numbers coming out of China, and analysts believe
that during this downturn, the actual growth numbers were much lower
than those published officially.
They pointed
to lower electricity numbers that have dropped off substantially more
than the economic drop-off on a percentage basis. The conclusion is that
China is inflating the real growth numbers to paint a more flattering
picture of their economy.
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