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If the data I have read is to be believed, the biggest driver of the growth of China's GDP is real estate investment. I have read this in many places, includin

If the data I have read is to be believed, the biggest driver of the growth of China's GDP is real estate investment. I have read this in many places, including here: http://www.alsosprachanalyst.com/economy/nominal-vs-real-gdp-growth-of-china.html http://www.alsosprachanalyst.com/economy/nominal-vs-real-gdp...

nl 15y ago
Your linked article doesn't even mention real estate investment(?) (The title here is Nominal vs. Real GDP Growth Of China. "Real" - in this context - means "adjusted for inflation". Beyond that it is an interesting article but doesn't seem relevant to the real estate discussion at all)
- nate_meurer 15y ago
  Read it again chump. You need to-- oh wait, damn, you're right. Sorry. Try this instead. No real numbers, but perhaps a bit of inductive support: http://www.foreignaffairs.com/articles/136963/patrick-chovanec/chinas-real-estate-bubble-may-have-just-popped http://www.foreignaffairs.com/articles/136963/patrick-chovan...
  - nl 15y ago
    lol Residential real estate construction now accounts for nearly ten percent of the country's total GDP -- four percentage points higher than it did at the peak of the U.S. housing bubble in 2005. Bullish analysts have long argued that large-scale urbanization and rapidly rising incomes warrant such an extraordinary boom. 10% of total GDP is significant, but when the economy is growing at 10% a year[1] it can afford to drop quite a lot without necessarily causing an economic meltdown. To be clear - I'm not claiming that a drop in real estate prices won't cause problems for the entities involved in the Chinese real estate sector. What I am claiming is that it might not be as catastrophic as people expect based on the US experience. [1] http://www.google.com.au/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_kd_zg&idim=country:CHN&dl=en&hl=en&q=chinese+gdp+growth http://www.google.com.au/publicdata/explore?ds=d5bncppjof8f9...

nl 15y ago

Your linked article doesn't even mention real estate investment(?) (The title here is Nominal vs. Real GDP Growth Of China. "Real" - in this context - means "adjusted for inflation". Beyond that it is an interesting article but doesn't seem relevant to the real estate discussion at all)

nate_meurer 15y ago
Read it again chump. You need to-- oh wait, damn, you're right. Sorry. Try this instead. No real numbers, but perhaps a bit of inductive support: http://www.foreignaffairs.com/articles/136963/patrick-chovanec/chinas-real-estate-bubble-may-have-just-popped http://www.foreignaffairs.com/articles/136963/patrick-chovan...
- nl 15y ago
  lol Residential real estate construction now accounts for nearly ten percent of the country's total GDP -- four percentage points higher than it did at the peak of the U.S. housing bubble in 2005. Bullish analysts have long argued that large-scale urbanization and rapidly rising incomes warrant such an extraordinary boom. 10% of total GDP is significant, but when the economy is growing at 10% a year[1] it can afford to drop quite a lot without necessarily causing an economic meltdown. To be clear - I'm not claiming that a drop in real estate prices won't cause problems for the entities involved in the Chinese real estate sector. What I am claiming is that it might not be as catastrophic as people expect based on the US experience. [1] http://www.google.com.au/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_kd_zg&idim=country:CHN&dl=en&hl=en&q=chinese+gdp+growth http://www.google.com.au/publicdata/explore?ds=d5bncppjof8f9...