Nobel laureate economist Paul Krugman has expressed concerns about the Chinese economy, indicating that it is in trouble with its inability to productively invest 40 percent of its GDP amidst signs of stagnation. Krugman suggests that China, once seen as a contender for global economic dominance, is now facing troubles similar to those experienced by Japan, including deflation and high youth unemployment. Despite China's impressive technological advancements in some sectors, the overall productivity appears to be stagnating. Concurrently, China has resumed releasing youth unemployment data with a new methodology, which has resulted in a lower reported rate. However, the National Bureau of Statistics (NBS) remains vague on the details of the new and old methodology and has not updated historic data. This has led some economists to ignore the new youth jobless rate.
Paul Krugman in NYT: "Even the official statistics say that China is experiencing Japan-style deflation and high youth unemployment. It’s not a full-blown crisis, at least not yet, but there’s reason to believe that China is entering an era of stagnation." https://t.co/wtbAs3mTur
Instead of trying to stimulate #AggregateDemand, perhaps #China should look to change its #MonetaryPolicy stance. Scott Sumner at #EconLog: https://t.co/oczpoDhvDD
China is entering an era of stagnation and disappointment that may not be resolved like Japan's, Nobel economist Paul Krugman says https://t.co/Nk2PJRP96E
For once I agree with Krugs... China’s Economy Is in Serious Trouble https://t.co/a2JmlP8Xzu
China Has a New Youth Jobless Rate. Some Economists Are Ignoring It. - WSJ https://t.co/Fb7HP0hHy9
China resumes releasing youth unemployment data, with new methodology. Shocker, it's now much lower than the figures that caused concern last year. NBS still vague on details of new (and old) methodology; hasn't updated historic data with new methodology. https://t.co/inYloz2mig https://t.co/ISVo8xl29e
China has finally released a revised youth unemployment rate. Spoiler alert: It’s lower. https://t.co/he6sy59CbZ https://t.co/he6sy59CbZ
As Paul Krugman notes, China's high rates of investment can be sustained in an under-invested economy with a surging working-age population, but when both conditions have reversed, "this isn’t a nation that can productively invest 40 percent of G.D.P." https://t.co/jveeQTTEXN
In @nytopinion “Why is China’s economy, which only a few years ago seemed headed for world domination, in trouble?” asks @paulkrugman. https://t.co/LGnBFjSJ0V
Krugman: "While China has shown impressive technological capacity in some areas, its overall productivity also appears to be stagnating. This, in short, isn’t a nation that can productively invest 40 percent of G.D.P. Something has to give." https://t.co/N1MVqEPBm7
Curious what everyone thinks of Krugman's new opinion on the Chinese economy. https://t.co/67UkJaZ4oA