Chinese acrobats are among the best in the world. So are Chinese illusionists, and Beijing will need both their skills to convince markets that last year’s rapid growth of money and credit can be tamed without sacrificing long-run growth.
After achieving real GDP growth of 8.7 percent last year, China’s economy is expected to grow by 9–10 percent this year. Some of that growth is due to sleight-of-hand accounting—for example, counting disbursements for investment projects as part of GDP, even if those projects haven’t started yet.
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