More Evidence of China Slowing Permeating Asia – 7/16/2015

Yesterday saw a few more weaker data points out of Australia and South Korea that are worthy of mention. Namely, Australian consumer confidence dropped again to around the lowest it’s been since 2009 and South Korea unemployment remained at its cycle highs. No matter what the top line China GDP number was, there is no doubt that China is on a structurally slower growth trajectory and this is most definitely affecting its closest neighbors. Indeed, with fixed asset investment slowing to new lows (3rd chart below) and the debt piles up, there is literally no feasible way for China to continue growing at around 7% annually for a sustained period.

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