China's GDP growth as steadily declined within the last two years, falling from 7.2 percent at the beginning of 2015 to 6.8 in 2016. While 6.8 GDP annual growth is still high, its been part of a decline that has led to raised eyebrows from politicians. The article notes an unusual occurrence in China's GDP growth in that China has a negative GDP deflator of -0.8 percent but GDP growth above 5 meaning there is a lot of demand for products and services putting pressure on prices thus lowering them. But because China has invested so much into production capacity the falling prices could be seen along with high growth rates. In the end, the article relates this occurrence to growth being overstated due to the GDP deflator tracking PPI(Producer Price Index) in China which has been falling since 2012 while consumer prices have risen which represent a much larger portion of China's economy. The author concludes that the GDP of the fourth quarter of 2015 is lower than 6 percent which would account for the unusual measurements and more realistically represents China's most recent GDP measurements.
http://seekingalpha.com/article/3823186-odd-thing-chinas-gdp-growth?page=2
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