Hunting Recession – Chinese Economy
The recent performance of Chinese real estate has been concerning Roughly 25% of Chinese GDP is tied to real estate (through the construction industry, industrial and financial sectors) Based on a Kansas Fed study, 10% decline in demand for real estate could lead to a 2.2% decline in GDP. That means that a 25% decline (similar to the one we’ve seen in the US after the housing bubble) would erase the current GDP growth! 13 FinLight Research | www.finlightresearch.com