Nominal GDP suggests sharper slowdown for China's economy

The end of steady inflation a few years ago has resulted in China’s nominal gross domestic product growth rates falling more sharply than official figures indicate, with first quarter year-on-year expansion slowing from nearly 20% in 2011 to 5.8% this year, The Financial Times reported, citing a report published by HSBC. In contrast, inflation-adjusted real GDP growth rates show national output falling from 9.5% to 7% over the same period, suggesting a more gradual soft landing for the country’s economy. Revenue growth for companies listed in mainland China – excluding volatile energy and financial stocks – closely matches the trend in nominal growth rates over the last decade.