Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on January 16, 2020

Bookmark and Share

China’s Largest Utility Company Warns “Growth To Decelerate Sharply Through 2024”

Consumption

Ahead of tonight’s key China data dump, State Grid, China’s largest utility company, has warned the rate of economic growth in the country could plunge to 4% within the next four years, according to internal forecasts, first seen by the Financial Times.

The state-owned utility has turned bearish on the Chinese economy. It forecasts a rapid slowdown that has already dented energy demand across all 23 provinces and could last until 2024.

Already, ten of the company’s 25 regional operations reported a loss in 2019, according to company insiders, resulting in decreased capital expenditures.

One official from the utility company, who asked not to be identified, said the economy was booming, and generally, that meant internal estimates about the economy were overly bullish. But now, it appears the exact opposite, and internal estimates show China’s economy is decelerating while official GDP estimates are up.

“We used to be more bullish than the market consensus,” the official said. “Now, we are doing the opposite.”

The Times notes that State Grid’s infrastructure spending has been a reasonably good barometer of China’s investment-driven economy. That is because infrastructure investment, in State Grid’s case, has been driven by the government. With the decreased investment, this suggests a slowdown in the economy is expected to persist through 2020.

Last month, the People’s Bank of China (PBoC) said the economy is expected to remain in a slump for the next five years, essentially confirming State Grid’s bearish economic outlook.

Liu Shijin, a policy adviser to the PBoC, said the country’s GDP will decelerate through 2025 and could print in a range of 5 to 6%.

Shijin warned that excessive monetary policy is failing to stimulate the economy and could cause it to rapidly decelerate.

China’s economic growth has already crashed to a three-decade low. State Grid’s worst-case scenario is a 4% GDP print by 2024.

“We were upbeat about China’s power demand five years ago because the economy was still robust and 7 or 8 percent GDP growth was the bottom line,” the official said. “No one expected growth to decelerate so sharply.” He warned that 4% growth by 2024 was the utility’s worst-case scenario.

China’s failure to stimulate its economy is illustrated in the chart below. Credit creation isn’t raising electricity demand seen on a Y/Y basis.

To gain more color on China’s slowdown, Fathom Consulting’s China Momentum Indicator 3.0 (CMI 3.0), which provides a more in-depth view of China’s economic activity than the official Chinese GDP statistics.

CMI 3.0 is based on ten alternative indicators for economic activity; some of those indicators include railway freight, electricity consumption, and the issuance of bank loans.

State Grid’s bearish outlook on the economy is some of the first internal data from a state-owned company confirming our thoughts that China’s massive money printing, as of early 2020, isn’t working and the country is headed for a prolonged slowdown.

And this is more bad news for global stocks at all-time highs expecting a massive rebound in China/global economy.




74 Comments on "China’s Largest Utility Company Warns “Growth To Decelerate Sharply Through 2024”"

  1. JuanP on Fri, 17th Jan 2020 4:45 pm 

    good mak, I am in charge now

  2. Davy on Fri, 17th Jan 2020 4:50 pm 

    PS. I love you cloggo. Feel free to pop on over for some moonshine and canned beans this weekend to celebrate my recent victories against all these anti-American dumbasses. We can watch Fiddler on the Roof, on my cell-phone and listen to some Barbara Streisand, also on my cell phone. And the goat has been asking when you are coming over again and will be very glad to see you, if you know what I mean.

    Xoxxoxxoooxxoxoooxoooxo

  3. makati1 on Fri, 17th Jan 2020 5:03 pm 

    It appears that PO has turned psycho as a result of too many Amerikans with the same mental problem. It has spread to the Netherlands, but not as drastic … yet.

    Meanwhile, in the real world, Amerika is still sliding down the slope to the 3rd world faster every day. The insanity is blatant to the rest of us outside the Amerikan Gulag. I would post refs and examples, but they would be denied/ignored by the brainwashed, dumbed down, drugged up snowflakes that inhabit the US Police State. The rest of us already know. Have a great day, wherever you are.

  4. JuanP on Fri, 17th Jan 2020 5:06 pm 

    Shut up mak, quit the whining. You started all this shit by being a hate magnet. Now you can’t take the heat. Get out of the kitchen why don’t you. We are very happy to see you go. Don’t let the door smack you in the ass.

  5. Davy on Fri, 17th Jan 2020 5:13 pm 

    STFU juanpee. We all appreciate makati1’s perspective.

    stupid

  6. makati1 on Fri, 17th Jan 2020 5:42 pm 

    Thanks, Davy, as much as it is hard to admit you have some of the best post on this forum.

  7. makati1 on Fri, 17th Jan 2020 5:46 pm 

    Sorry, I meant to say, Davy is as smart as a post.

  8. Davy on Fri, 17th Jan 2020 6:22 pm 

    Only treated posts mak. The other ones are smarter then me.

  9. full woke supremacist muzzie jerk low english i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Sat, 18th Jan 2020 12:46 am 

    supertards,
    i hope your new year is still muzzie free and a happy one at that.
    muzzies are flooding into political offices around america though so that’s bad news.

    i grew up hearing about muzzie terrorism before the interweb was invented. it turns out the terrorism was fresh since starting 1400 years ago

    thanks for supertard glenn roberts thereligionofpeace

    On This Day…
    Jan 18, 1973: Washington, DC, USA
    Five children are among those shot or drowned
    on orders by the Nation of Islam: 7 Killed

    i was going to go with my buttplug handle but decided to go with something with a bit more levity

  10. makati1 on Sat, 18th Jan 2020 3:28 am 

    Somebody find full woke supremacist muzzie jerk a padded cell please!

  11. Cloggie on Sat, 18th Jan 2020 3:29 am 

    Mak, That is JuanP or did you not figure that out yet?

  12. full woke supremacist muzzie jerk low english i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Sat, 18th Jan 2020 4:39 am 

    above is not me. i’m never here, never been.
    this place is full of muzzies and lovers of smelly muzzies

  13. makati1 on Sat, 18th Jan 2020 4:51 am 

    go back to your padded room luntic

  14. full woke supremacist muzzie jerk low english i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Sat, 18th Jan 2020 5:06 am 

    supertard,

    someone told me muzzies love me this i know for the bible and SuperDuperTard davy told me so.

    whichever one of you muzzie lovers that stole my buttplug i demand its return NOW (not playin around).

    above is all me

  15. Cloggie on Sat, 18th Jan 2020 5:28 am 

    get the fuck out of here full woke supremacist muzzie jerk you lunatic

  16. JuanP on Sat, 18th Jan 2020 5:29 am 

    LMFAO

  17. full woke supremacist muzzie jerk low english i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Sat, 18th Jan 2020 6:13 am 

    why SupremeTard* davy and SuperTard cloggie lashing out against friend/suporter???????

    *SupremeTard highest classification

  18. Cloggie on Sat, 18th Jan 2020 6:29 am 

    full woke supremacist muzzie jerk go back to being paultard and we will love you again. Stop the ID theft and socks under your other personality JuanP

  19. Cloggie on Sat, 18th Jan 2020 7:05 am 

    @PaulTard

    I did not write the posts above. You should know that by now. Mobster did.

  20. full woke supremacist muzzie jerk low english i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Sat, 18th Jan 2020 7:57 am 

    Cloggie love for fellow muzzie hater & liberal hater & negro hater & chink hater

  21. full woke supremacist muzzie jerk low english i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Sat, 18th Jan 2020 8:00 am 

    cloggie friend return (sanatize) buttplug after usage

  22. Sissyfuss on Sat, 18th Jan 2020 8:08 am 

    Anyone who believes in China’s ghost cities growth stats should therefore believe in the US’ 3.5 unemployment rates. Our governments wouldn’t lie to make themselves look good. They’re much too honest and upright for such malfeasance.

  23. Richard Guenette on Sun, 19th Jan 2020 9:52 am 

    Chinese are hardworking, peaceful, modest and conservative. They support society, not just the individual. They keep their thoughts (example: opinions) to themselves. The Chinese have been around for 5,000 years and have a rich culture.

  24. full woke supremacist muzzie jerk low english i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Sun, 19th Jan 2020 10:01 am 

    above not me obv.
    i’m never here. i don’t go on some innernet site, never been

Leave a Reply

Your email address will not be published. Required fields are marked *