After changing the rules, the US GDP became even higher! But the gap between the real economy and China is even greater
In a previous article, Nansheng mentioned that the US Department of Commerce revised the question of "base year prices in the US GDP accounting process" and raised the GDP in the first half of 2023 to $132266 billion, which is $122.5 billion more than the previously announced value.
GDP is getting higher, not just in the first half of 2023
There are also 2022 and previous years, taking 2022 as an example: the previously announced size of the US GDP was about $25.46 trillion, but after amending the rules, the size of the US economy was raised to $25.744 trillion - an upward increase of $281.4 billion.
The upward adjustment of $281.4 billion is equivalent to the total GDP of a lower-middle-income economy. The magnitude of this adjustment is staggering, and in turn, China's GDP in 2022 fell below the 70% mark compared to the US – to 69.9%.
This year, the US economy still maintains a relatively good growth potential, the price of goods and services in the United States is also much higher than China's, and the US dollar exchange rate trend is much stronger than that of the RMB, it can be predicted that in 2023, the GDP gap between China and the United States will be larger than in 2022.
But the "blurring" of the US economy has also become more serious
Let's first look at the primary industry, that is, agriculture, forestry, animal husbandry and fishery, and specifically refers to the "production part of agriculture, forestry, animal husbandry and fishery", and the service part is classified as the tertiary industry.
After the revision, the GDP generated by the primary industry in the United States in 2022 has been revised down to $270.82 billion from the previously announced $288.908 billion. It was revised downward by $18.088 billion, to 1.05% of the size of the US economy.
Looking at the secondary sector, that is, construction, manufacturing, mining, and electricity, heat, gas and water production and supply, it is also necessary to "remove the service part" - the excluded service part is classified as the tertiary industry.
After the revision of the rules, the GDP generated by the secondary industry in the United States in 2022 was "revised down to $4,635.448 billion from the previously announced $4,724,372 million." It was revised downward by $88.924 billion, reducing its share of the size of the US economy to 18.01%.
Finally, the tertiary industry, which we usually call the "broad service industry", generated a GDP of $2,0837.84 billion in 2022, up $388.398 billion compared with the previously announced $2,0449.442 billion.
The US tertiary industry, as a proportion of the total US GDP, was revised up to 80.94%. In other words, the core that really drives up the size of the US economy is the tertiary industry, even if we eliminate the primary and secondary industries that create physical goods, and rely on the tertiary industry alone.
The United States can also make his GDP global among the world's countries. From this point of view, the physical part of the US economy has become more and more diluted, and the phenomenon of "virtual transformation" of the US economy has become more serious
Looking at the real economy, the gap between China and the United States has also become wider.
But this increase is not that the advantages of the United States are stronger, but that the disadvantages are greater. Still taking 2022 as an example, the GDP created by the mainland's primary industry is US$1,313.472 billion, which is 4.85 times that of the United States.
In 2022, the GDP generated by China's secondary industry will be US$7,183.453 billion, which is 1.55 times that of the United States. After the sum of the primary and secondary industries, the size of China's real economy has increased to 1.73 times that of the United States. What do netizens think about this? This article is written by Nansheng, please do not reprint or plagiarize without authorization!