More evidence this week that the Chinese economy is slowing. Manufacturing activity in April increased at a slower pace than what was expected and what was reported the previous month. And that followed earlier reports showing first quarter GDP slowing to a 7.7% annual rate compared to 7.9% in the fourth quarter.
By comparison, first quarter growth in the U.S. was less than one-third the rate in China. The U.S. economy grew at a 2.5% annual rate in the first quarter following 0.4% in the fourth quarter.
Clearly both mega economies are slowing but at very different rates.
“Even 7.5% or 7.7% growth is something we would kill for,” says Niall Ferguson, professor of history at Harvard University. He recently spent a month in China and spoke with The Daily Ticker at this week’s Milken Institute Global Conference about what he found.
The “hot button debate” in Beijing right now, he says, is not about democracyRead More »from China vs The West: I’m Bullish on America in the Long-Term, Says Niall Ferguson