News that doesn't receive the necessary attention.

Thursday, January 19, 2017

Official confirmation that China's GDP numbers have been fabricated. Governor admits his province has been "involved in a large-scale financial deception" from 2011 to 2014-BBC

1/19/17, "The perils of reporting on China's GDP,"  

"Whenever China's GDP figures are released, foreign correspondents fly into action with plenty of analysis about what they might mean.... 

Now, for the first time, we have official confirmation that GDP here has been fabricated.

According to the Governor of Liaoning, Chen Qiufa, his province has been "involved in a large-scale financial deception" from 2011 to 2014. He said that fake data from city and county level officials misled the central government about the area's economy

His announcement was made a meeting of the local legislature giving it even more gravitas.

If China's GDP is not to be trusted then how to judge this country's economic health?

Some analysts turn to electricity consumption or seaborne cargo believing that these are actual measurable indicators of activity expanding or contracting.

Other potential yardsticks could include building construction per square metre or domestic freight volumes.

Using these measures there are those who think that, in recent years, China's actual GDP should have dropped much more dramatically from 8% down to more like around 4% rather than just below 7%. However without solid, reliable figures this remains a debate with wide-ranging, conflicting views.

Mind you, even if at worse China's real GDP is around 4% at present, there are plenty of national governments which wouldn't mind a taste of those numbers." EPA photo via BBC


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