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Page added on May 13, 2013
Chinese Power Consumption Collapses: Economic Growth Slowest Since Early 2009
Not much to add here. If there still is any confusion why China is desperately manipulating its economic data, so balatantly in fact that virtually everyone has now noticed, this chart should put all doubt to rest. According to CLSA’s Chris Wood using NEA data, China’s monthly power consumption (the most accurate proxy for underlying economic strength according to the current premier) growth slowed from 5.5% YoY in Jan-Feb 2013 to 1.9% YoY in March, the slowest growth rate since May 2009 (as discussed in-depth here).
And just to make CNBC’s life easier, we will prespin this data: the lack of growth merely shows there is much pent up growth on the sidelines, even if the country is now injecting more debt to just maintain the flatline, than ever.
6 Comments on "Chinese Power Consumption Collapses: Economic Growth Slowest Since Early 2009"
Arthur on Mon, 13th May 2013 5:37 pm
China is not going to ‘overtake’ the US or EU anytime soon. Or never. No energy.
Plantagenet on Mon, 13th May 2013 6:33 pm
China can buy all the oil they want on the open market and they have plenty of NG in shale. Their problem isn’t lack of energy—its slumping demand for Chinese exports from the EU (which is in a depression) and the USA (which is in the weakest recovery in history).
Mike on Mon, 13th May 2013 7:30 pm
The us is not in a recovery. They are exporting their depression/recession to the rest of the world. One day the world is going to wake up and America will simply vanish as a cultural system. I expect many wars to be fought over America next century. Europe vs China vs South America springs to mind
Arthur on Tue, 14th May 2013 12:14 am
“I expect many wars to be fought over America next century.”
I expect merely one. That will be the Alex Jones ‘gun nut’ types against the Bloombergs, umm I mean the ‘illuminaties’, ‘Bilderbergers’ or ‘Lizards’, in case you are British.lol Europeans and Asian will prefer to stay at home and follow it on television. The difference is of course that in the case of the USSR there were clear historic boundaries between the CIS follow-up states. Not so in the US.
BillT on Tue, 14th May 2013 1:21 am
The Us would be happy to have a REAL 1.8% growth in anything positive. Instead they have growth in: food stamps, unemployment, bankruptcies, suicides, gun sales, and prices of everything. Under all of the government BS is the reality of an ongoing depression. Ditto Europe, the other consumer of Chinese junk.
Arthur, don’t think that Europe is going to avoid bloodshed. The riots are only beginning there. When most of your riot age citizens (16 to 36) are permanently unemployed, they will take it out on anything and anyone they believe is causing it. They don’t need guns. Molotov Cocktails, bricks and clubs work quite well to take down a city.
rollin on Tue, 14th May 2013 8:34 pm
China is having a heyday, choking air in places but still a heyday. 30 years from now will be a vastly different experience. Back to the farm, if any are not toxic waste dumps.