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Tuesday, March 10, 2009

China enters deflation, officially

It's the 3rd time China entered deflation zone in the past ten years. The last times were in late 90s and 2002. In the past, deflation only slowed China's GDP growth, but has not dragged China into recession. I don't think it will this time, either (if you define recession as negative GDP growth).



(click to enlarge)