In China, all provinces are above average when it comes to growth.
FT: GDP totalled Rmb15,376bn ($2,251bn) in the first half, according to data released individually by China’s 31 provinces and municipalities, 10 per cent higher than the official first-half GDP figure of Rmb13,986bn published by the National Bureau of Statistics.
All but seven of the regions reported GDP growth rates above the bureau’s first-half figure of 7.1 per cent. At the start of the year, Beijing set 8 per cent as China’s growth target for the year.
With the rest of the world looking to China as a beacon of expansion, the discrepancy is a reminder that statistics there are often unreliable and manipulated regularly by officials for personal and political purposes.
Apparently the discrepency is so obvious that even state-controlled media has been pointing it out. Our best guess is that the central government knows the provinces are full of it, and are adjusting down whatever statistics they receive, and that state-controlled media is being used to warn the local governments.
That being said, it’d be more worrisome for investors in the bubblicious Shanghai market if they had the opposite problem, where local data wasn’t adding up to what the central government was saying.
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