CLEAN : Chinese growth slows in 2016 with outlook uncertain

The video discusses the rapid growth of credit and investment in the economy, questioning how long this can be sustained. It highlights the difference between GDP growth and real underlying economic growth, suggesting that sustainable growth should not exceed debt growth. Currently, debt is growing at 18% while GDP is at 7%, indicating an imbalance. The video emphasizes that GDP measures economic activity, not growth, and suggests that China's current debt growth is unsustainable, predicting it may continue for only two to three more years.

What is the main concern about the rapid growth of credit and investment in the economy?

• It causes a decrease in exports.

• It leads to inflation.

• It is unsustainable in the long term.

• It reduces employment opportunities.

Why is GDP not a perfect measure of economic growth?

• It excludes government spending.

• It only considers domestic production.

• It does not account for inflation.

• It measures economic activity, not true growth.

What is necessary for economic growth to be considered sustainable?

• Growth must match debt growth.

• Growth must exceed debt growth.

• Growth must be less than debt growth.

• Growth must be independent of debt growth.

What is the current rate of debt growth compared to GDP growth?

• Debt and GDP are both growing at 18%.

• Debt is growing at 7%, GDP at 18%.

• Debt is growing at 18%, GDP at 7%.

• Debt and GDP are both growing at 7%.

What is the potential consequence of allowing debt to grow at its current pace?

• Higher unemployment rates.

• Sustained economic growth.

• Long-term economic instability.

• Increased foreign investment.