MP Econ Issue 10: China’s Property Sector Is Smaller Than Meets the Eye
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In our recent outlook, I estimated that the property sector’s correction will shave just 0.6 percentage points off of China’s headline growth. This assessment of a modest growth impact is predicated on the assumption that there has been systematic exaggeration of both property and land revenue.
Wouldn’t that mean that GDP itself is two percent smaller than what is recorded in official statistics?