We shouldn’t expect China to have a statistical system as robust as those in the developed world. But the problems in China go beyond those normally found in an emerging economy. The biggest is that the GDP growth rate is politically sensitive, which makes it more likely to suffer manipulation. Unfortunately, early signs are that the forthcoming Five-Year Plan will include a GDP growth target. If so, the value of the GDP data as a measure of the economy’s strength will continue to be undermined.
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