Sino File | Why a cooling in China’s economy would be a good thing
Some may doubt the veracity of Beijing’s 2017 rosy growth data, but even if expansion slows this year, it will only be the sign of a healthy transition
These figures have raised questions over whether the growth of the world’s second-largest economy has finally stabilised, or if the first annual acceleration of growth in seven years will serve to reverse a downward trend since 2010.
Thus some economists are cautiously optimistic about 2018. However, the rosy numbers also provide reason for worry, as the recovery in growth has not yet proved to be broad-based. For instance, contributions from the main service sectors – such as real estate, wholesale and retail, finance and banking, and catering – all declined or remained flat last year.
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The international press greeted China’s data with scepticism, as the unanticipated pace of growth came amid reports that some local governments were cooking the books to fudge the numbers. Recently, several local governments have dramatically revised down their inaccurate and overestimated 2016 GDP data, suggesting they may go on to lower growth rates gradually in coming quarters to likewise “adjust”.