China - Good news, Bad news

First the good news.  China really is re-balancing their economy from exports to consumption.  Some of this good news may be because the export sector has been performing so badly, but nonetheless, a higher share of GDP for the consumer is ultimately good for China and the world:

But there still seems to be real gap between "Official" GDP and GDP estimates based on actual activity:

Even so, if China GDP ultimately settles in the 5% (plus or minus a bit) range that is still a rate of growth that keeps the Chinese social and economic model alive and is significantly higher than any other major economy can achieve.

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