Delete comment from: Captain Capitalism

zephyr said...

It is important to remember that data coming from China is highly suspect.

I do not believe the GDP or electricity numbers. My bet is that both are overstated.

GDP usually grows slower than electricity, as the economy makes increasing use of electrical technology, and proportionately less use of manual labor and simple energy applications.

Coincidently, there was an article in the Sunday NY Times on China's GDP growth, suggesting that the official GDP growth data is political fabrication more than reality, and that the ratio of GDP growth to electricity growth should be less than 50%. So 16% electricity growth (if true) might imply about 8% GDP growth.

Aug 28, 2007, 4:37:00 AM

Posted to Backdoor Economics