Sizzling Summer Stats

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Despite a variety of pronouncements and measures, there has been little sign that China’s economic growth is slowing down. The FT reports that:

    • Urban fixed-asset investment rose 25.9 percent in the first 5 months, year-on –year
    • The trade surplus rose over 80 percent
    • Industrial output was up 18.1 percent
    • The consumer price index was up 3.4 percent

Predictions are that more tightening measure will have to be taken, and that these might include another rise in the banks’ reserve requirements, as well as rises in deposit and lending rates.

In other economic news, Forbes reports that actual foreign direct investment (FDI) in the same period was up by 9.87 percent, at US$25.258 billion (though it is not stated I assume this is not including financial sector investment). The top investors were said to be Hong Kong, the British Virgin Islands (where lots of companies are obviously enjoying sunny tax holidays) and Japan.

And China Daily reports that Morgan Stanley have increased their China GDP projection for the year to 10.5 percent, up from 9.3 percent. This is well ahead of the government target of 8 percent, and also creeps past earlier estimates, from various sources, that were reported in April at between 9 and 10 percent.

A long, hot summer lies ahead.

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3 Responses to “Sizzling Summer Stats”

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