The most recent GDP growth and raw material usage statistics from China are not the product of the anticipated reformed economy with a lowered contribution to...
John Robertson
PortfolioDirect
The most recent GDP growth and raw material usage statistics from China are not the product of the anticipated reformed economy with a lowered contribution to growth from investment (and a larger consumption contribution). Of the 7.8% GDP growth reported for the third quarter, 4.3 percentage points appear to have come from investment spending and 3.4 percentage points from consumption. Over the same period, China's steel output rose 8.6%. We should not look a gift horse in the mouth but it would be a mistake to infer that the recently reported numbers are a post-adjustment rate of steel output because the foreshadowed rebalancing of the economy is not yet happening. Presumably, the tilt toward consumption is still to come. Then, we might have a clearer sense of what happens to steel output over the longer haul.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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