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Dismal Asia GDP numbers


Republic of Korea economy contracts by 5.6% on an annualized basis, China GDP growth slows to 6.8% annualized. Exports in free fall.

China’s economic slowdown deepened in the last quarter of 2008, with economic growth falling to an annual rate of 6.8 per cent in the face of slumping exports and a weak housing market.

The news came as the Bank of Korea undershot market estimates by reporting that gross domestic product contracted by 5.6 per cent in the final quarter of last year compared with the third quarter, pushing the country closer to its first recession since the Asian financial crisis. Exports from Asia’s fourth-biggest economy slumped 11.9 per cent in the final quarter.

Financial Times

Also US housing starts drop 15% in December on an annualized basis all time low since statistics start in 1959.


Stirling Newberry January 22, 2009 - 9:34am
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( categories: Miscellany )

GDP and National Prosperity

While GDP is an important economic indicator, it is less indicative as an indicator of political economy as the GINI coefficient rises. When there is inequality in the distribution of wealth, the major proportion of pain falls upon those at the bottom, who constitute a vast majority of the country. Thus, even a seemingly small pull-back or even deceleration in China's case, can lead to massive unrest. We are already seeming riots in many countries. Clearly, there will be more to come.

tjfxh January 22, 2009 - 12:33pm
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Riots

We are already seeming riots in many countries. Clearly, there will be more to come.

25% of American retailers may be almost bankrupt but in some places 25% of the shops have been burned in the riots.


--Storm brings only richness with it

Singular January 22, 2009 - 9:07pm
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Chinese GDP

Chinese GDP figure ended exactly to the expected range.

Chinese investments were down in December, but consumption seemed to be up compared to November. They will have New Year soon which will mess the statistics.


--Storm brings only richness with it

Singular January 22, 2009 - 9:10pm
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