China’s Economy May Be in Worse Shape Than People Think

(Before It's News)

by Sue Chang
Market Watch

China may be in worse shape than authorities in Beijing are willing to admit.

An analyst at Evercore ISI crunched the numbers and estimated that the Chinese economy actually shrank in July, suggesting that China’s forecast for 2015 is overly optimistic, if not unrealistic.

“Our proprietary Synthetic Growth Index (SGI) fell 1.1% month-on-month in July, and was also down 1.1% year-on-year,” said analyst David Straszheim at Evercore ISI.

“Even if we adjust our SGI upward (for too-little representation of services—lack of data), we believe actual economic growth in China is far below the official 7.0% year-on-year. And it is not improving.”

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