China’s economy is NOT slowing

Pet peeve alert.

The economy in China is growing at a slower rate, measured by %GDP, than it has been in recent history.  The second order measure of the economy, the growth, the derivative, is slowing.  The economy itself is not slowing.

Where does this misconception show up?  All over the place.


NYT – The headline gets it wrong.  The details in the article get it wrong, then right.

Motley Fool – Again, wrong in the headline.  Correct in the details, as well as the subheading.

USA Today – Same thing.

The average person does not understand the difference, and many think that the Chinese economy is, in fact, slowing, like when we have a recession.  Negative growth.  In fact, the nominal amount of growth in the Chinese economy is far higher now than a few years back when it was 10%+.  Why?  Starting from a much bigger base now.

China is growing.  A lot.  The rate of growth is slowing, but it is still continuing to get much, much bigger every year.


Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s