June 18, 2014
ON THE BRIGHT SIDE, THEY DON'T HAVE THAT FAR TO FALL:
China May Not Be History's Economic Growth Champ After All, Report Says (Bob Davis, 6/18/14, WSJ)
Posted by Orrin Judd at June 18, 2014 6:22 PMAccording to the report, written by economist Harry X. Wu, a senior advisor to the New York-based business research group, China's economy grew at 7.2% a year between 1978 and 2012 -- a rate far lower than what Beijing claims and nowhere near 10%. And looking at a number of Asian economies over a roughly two-decade period during which such countries quadrupled their per-capita GDP, Mr. Wu concludes that China isn't the growth champ. Japan is, followed by Taiwan.This isn't just a question of bragging rights, writes Mr. Wu. Businesses base their investment plans on GDP growth, so accuracy is important, especially during down times. "When the economy is, in reality, slowing down or struggling, then the impacts of inaccuracy are farther reaching, potentially undermining efficacy in business, policy and household planning both inside and outside of China," he writes.