Industrial Exodus From Shenzhen, Guangzhou Crumbles, Leads to China’s GDP Fraud of $1 Trillion

Industrial Exodus From Shenzhen, Guangzhou Crumbles, Leads to China’s GDP Fraud of $1 Trillion

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A research assistant at the Chinese Academy of Economic Research, Guochen Wang, stated at a seminar on "The Situation in Mainland China and Cross-Strait Relations Before and After the 2024 Presidential Election" held on November 30th, that the actual economic condition of China is more severe than it appears. Using official data released by the Chinese government, he estimated the actual growth rate of the economy. By calculating the difference between expenditures in fixed investment, retail of consumer goods, housing sales, goods and service trade, and the Gross Domestic Product (GDP) for the first three quarters of 2023, he found a shortfall of 1 trillion US dollars, accounting for 7.9 percent of the GDP. This suggests that the GDP figures have been inflated by as much as 10 percent. The discrepancies in GDP figures are mainly due to local governments inflating data to enhance their political achievements.