Does This Chart Mean The Next Financial Crisis Will Be In China?

There’s an remarkable correlation between construction of the world’s tallest building and a subsequent financial crisis. So what happens after Burj Khalifa, which won’t be topped any time soon?

The author of the original skyscraper index, Andrew Lawrence, has a new report out suggesting we look at booms in skyscraper quantity and height (via Also Sprach Analyst).

In other words, check out what’s going on in China. The communist country will build 40% of the world’s skyscrapers in the next six years, increasing its own supply by over 50%.


Says Lawrence: “For investors, this concentration of skyscraper building should raise concerns. History implies that this is a sign of economic over-expansion and a misallocation of capital, which will result in an economic correction within the next five years. Whether this economic correction will actually occur is obviously impossible to know…unless of course China announces that it is about to start building the world’s next tallest building.”

See the amazing history of skyscrapers and recession here >