China's Zero-Growth Economy

[Valin]

Forbes:

Gordon G. Chang

3/11/12

 

On Friday, the National Bureau of Statistics announced that China’s production of electricity surged 20.6% in February. This follows a fall in output in January reported to have been between 5.1% and 7.5% (NBS, inexplicably, has not released a kilowatt figure for the first month of the year).

 

The statistics bureau reported that electricity production for the two-month period increased 7.1% over the same period last year. NBS combined the two months to eliminate the statistical distortions caused by the Lunar New Year holiday, which fell in January this year and February last year.

 

Because electricity output, the best indicator of economic activity in China, invariably outpaces the growth of gross domestic product, it’s apparent the Chinese economy is expanding only in the low single digits.

 

(Snip)