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GDP

The GDP of Bridges to Nowhere

26 March 2018

MICHAEL PETTIS In most economies, GDP growth is a measure of economic output generated by the performance of the underlying economy. In China, however, Beijing sets annual GDP growth targets it expects to meet. Turning GDP growth into an economic input, rather than an output, radically changes its [read more]

Is China’s Economy Growing as Fast as China’s GDP?

7 September 2017

by Michael Pettis If local governments and state-owned enterprises in China systematically invest in projects that are not economically justified, to the extent that these projects are not correctly marked to market, China’s reported GDP will be overstated by that amount, as will its total wealth [read more]