October 05, 2013

Marc Faber: Growth in China is rather 4%

China's economy probably growing at an annual rate of 4 %, according to Marc Faber , known in the investment community with extremely negative outlook. " I told an economist , I believe that the second-largest economy is growing at a rate of 4 % per year, and he asked me, lest I mean rate of minus four percent ," said Faber to financial magazine CNBC. " I do not think that growth was negative in the amount of 4% , but must be included in the projection state of the credit market, which is at healthy levels ," says Faber. China's economy grew by 7.7% last year as projected on the side of growth this year of 7.5 %, according to government data. Big credit growth is one of the main risks to the growth of the Chinese economy , according to market observers. In recent months, the central bank of the country , apparently realized the problem, some efforts to address the poor state of the credit market. Contrary to the opinion expressed by Faber , retail , long-term investment and industrial production were better than expected. Faber motivate their negative expectations with other indicators, such as sales data with neighboring countries that might provide better information for the Chinese economy in the distorted statistics of the country. "You have to take into account other indicators that are more reliable , such as data export to countries like Taiwan and South Korea ," said Faber. Faber confirmed positive attitudes for gold, commenting that the precious metal is relatively cheap right now.

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.