China Macroeconomics & Academia

Christopher Balding

Macroeconomics

<p>Despite the rhetoric, China remains tied to fixed asset investment to drive its economy.  What is notable is that the numbers have shifted within specific classifications but investment remains the driving force for the Chinese economy.</p><p>Looking at topline numbers, there is nothing that jumps out and even some encouraging points. FAI growth has dropped from the teens down to the high single or low double digits.  As we see in Figure 1, most major categories have been drifting down with secondary…</p>

Despite the rhetoric, China remains tied to fixed asset investment to drive its economy.  What is notable is that the numbers have shifted within specific classifications but investment remains the driving force for the Chinese economy.Looking at topline numbers, there is nothing that jumps out and even some encouraging points. FAI growth has dropped from the teens down to the high single or low double digits.  As we see in Figure 1, most major categories have been drifting down with secondary…

Just How Important Is FAI to the Chinese Economy?