Something About Chinese Growth That Surprised Us

Deutsche Bank is out with a big report comparing two of the world’s manufacturing powerhouses: Germany and China.

This chart of contribution to GDP over time really surprised us. You think of China as an export powerhouse, but really, its exports’ contribution to growth is dwarved by the amount spent on domestic investment.

Germany is just the opposite.

This really puts into perspective the calls for “rebalancing” in China, and the need to move towards an economy that’s not just based on investment.

Germany China exports

Photo: Deutsche Bank

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