Almost immediately after the Chinese National Bureau of Statistics released its second quarter GDP growth estimate of 7 percent in mid-July, a group of China watchers were crying foul. China officially targeted full-year growth of around 7 percent in 2015, a number matched exactly by its reported GDP figures for the first half of the year.
Last week, Forbes ran a piece by hedge fund manager Jay Somaney, who argued that China’s growth is significantly lower. Somaney cited as evidence data points from the precipitous drop in the Chinese stock market and an 8.3 percent drop in exports to a glut in the country’s real estate market and the devaluation of the renminbi (RMB) by Chinese monetary authorities. Ivan Glasenberg, CEO of the commodity trading and mining firm, Glencore, speculated that China’s crackdown on corruption has stalled infrastructure projects, slowing growth well below 7 percent. As this piece was written, the median estimate of 11 economists surveyed by Bloomberg put China’s GDP at 6.3 percent.
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