Two Charts to Explain the Current State of the Chinese Economy

The third quarter GDP number for China was released today, showing a decline in growth to 7.4 percent (compared to 9.1 percent a year ago). Instead of a long post reiterating all the factors at play, sometimes a chart or two can sum things up succinctly.

Here are the two most important graphs for understanding the slowdown.

Real Estate Investment (percent growth YoY): 

Exports to Europe (percent growth YoY):

The crackdown on the residential real estate market and the ongoing crisis in Europe continue to restrain economic growth in China.