Leading independent econ thinktank finds the gap between China and developed countries across various consumption sectors is significantly narrower when measured by actual consumption volumes.
This is an excellent study of comparative consumption levels between China and other countries. Rather than do the comparison in financial terms (even adjusted for exchange rate differentials) this study addresses the material measures themselves - calories, square metres, number of units etc. The results suggest that on financial measures China’s household consumption patterns and volumes are chronically underestimated and this further suggests that China’s real GDP has also been significantly under-estimated. It finally says something about relative low prices of goods and services in China. This is a vitally important intervention in a global debate about China’s consumption levels, suggesting strongly that western missives are simply off the mark.
This is an excellent study of comparative consumption levels between China and other countries. Rather than do the comparison in financial terms (even adjusted for exchange rate differentials) this study addresses the material measures themselves - calories, square metres, number of units etc. The results suggest that on financial measures China’s household consumption patterns and volumes are chronically underestimated and this further suggests that China’s real GDP has also been significantly under-estimated. It finally says something about relative low prices of goods and services in China. This is a vitally important intervention in a global debate about China’s consumption levels, suggesting strongly that western missives are simply off the mark.
probabaly the strongest case for overcapacity one could make
probabaly the strongest case for overcapacity one could make