This is honestly a pretty slow growth in nominal gdp. China's nominal gdp growth has been lagging since the property crash. It's time for a stimulus so that deflation can be tackled.
Nominal growth is impacted by:
- Deflation
- Low nominal growth rates (deflation makes real gdp look better)
- Adverse demographics
- RMB depreciation
Seriously, RMB should just appreciate by 20% already! Stocking too many USD is useless, and will in fact soon ignite trade frictions.
