The spread between the income and production side of the economy keeps widening, but are there reasons to worry, or is it once again just a statistical question?
An interesting gap is emerging between GDP and GDI, which in theory should be 2 conceptually equal measures of domestic output. Who’s right and who’s wrong? And where does this place us in the business cycle?
China’s top legislature, the National People’s Congress (NPC), opened its annual meeting yesterday. The main highlight was the presentation of the new work report by outgoing Premier Li Keqiang which sets the 2023 fiscal targets for the Chinese economy. Later this week, Xi Jinping is expected to further consolidate his power with several high-profile appointments including the new Premier, vice-premiers, and the new governor of the central bank.
Tokyo inflation solidifies our theory that Asian inflation (Japan, China, Taiwan and parts of Oceania) will continue to rally during Q1-Q2, while the actual production is BACK in the West.