An alternative, satellite view of China

Tomas Adam and Soňa Benecká

A chapter in CNB Global Economic Outlook - January 2020, 2020, pp 14-17 from Czech National Bank, Research and Statistics Department

Abstract: Doubts about the quality of China's official GDP figures persist and cannot be expected to fade soon, despite considerable efforts made by the Chinese authorities. This creates space for unconventional approaches to measuring economic activity. Alongside the main alternative approaches (based, for example, on electricity consumption and railway cargo traffic), satellite imaging indicators are increasingly being used. We will focus in greater detail on SpaceKnow's Chinese Satellite Manufacturing Index (SMI). This tracks industrial activity in the manufacturing sector based on satellite data analysis. Its significant advantage is the timeliness and quality of the data provided, which make it a valuable input for understanding Chinese economic growth. The SMI currently indicates a slight slowdown in Chinese manufacturing.

Date: 2020
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