From 5 59 trillion yuan to 7 47 trillion yuan, the GDP gap between China and the United States has w

Mondo Finance Updated on 2024-01-31

Recently, the topic of "the widening GDP gap between China and the United States" has sparked heated discussions among netizens, and according to published data, the gap between the economic aggregates of China and the United States has widened in 2022, which is also the first time that the country has responded to this question.

At an important meeting, a reporter asked the question: In 2022, China's GDP grew by 3%, while the United States grew by only 21%, but why is the economic growth rate in the United States higher than in China, which has led to a widening of the economic gap between China and the United States?What's going on?

According to various data, in 2022, China's GDP reached 121 trillion yuan, which is about $18 trillion at the average exchange rate for the whole year, while the GDP of the United States reached 2547 trillion US dollars, the GDP gap between the two countries is 747 trillion dollars.

By comparison, in 2021, the GDP gap between China and the United States was 5$59 trillion, and in 2022, the gap increased by 1$88 trillion, that's a noticeable change.

The state has also given an official answer to this question. The country said that the inflation rate in the United States was high last year, which led to the rapid growth of nominal GDP in the United States, while the inflation rate in China was relatively low, which caused the difference in GDP growth rates between the two countries.

Specifically, there are two main reasons for the widening of the GDP gap between China and the United States:

The first reason is the impact of inflation. Inflation is the ** of prices, when countries calculate GDP, they are counted in their own currency, if the price **, then the nominal scale of GDP will also increase.

Last year, GDP in the United States grew by 21%, and China's GDP grew by 3%, from this point of view, China's economic growth is faster, but this figure does not include changes in prices, if the changes in prices are also taken into account, then the nominal GDP growth rate of the United States is as high as more than 9%, while China's nominal GDP growth rate is only about 5%, which is the gap **.

The second reason is the impact of exchange rates. The exchange rate is the exchange ratio between the currencies of different countries, and if the GDP of the two countries is to be compared, it must be converted with the same currency, whether it is to convert the US dollar to RMB, or to convert the RMB to the US dollar, it will be affected by the exchange rate.

Last year, the interest rate of the dollar rose several times, which increased the demand for the dollar, the value of the dollar also increased, and the currencies of other countries depreciated accordingly, and the yuan also began to depreciate in the second half of last year, which means that our economic growth will be smaller when converted in dollars, which will also affect the comparison of GDP.

This is the main reason why the GDP gap between China and the United States widened last year, and it is a reasonable explanation from an economic point of view.

From the standpoint of the United States, the United States wants to maintain its position as the world's largest economy, and now China's GDP has accounted for 70% of the United States, the distance between the two countries is getting closer and closer, even if the gap widened last year, but that is only temporary, in the long run, the gap will continue to narrow, the United States will use various means to hinder and combat China's development, so the closer China's GDP is to the United States, the more nervous the United States is.

For China, GDP should maintain stable growth, as long as the economy can grow every year, it can solve many problems, for the people, the level of GDP is not the most important, it is more important to improve the people's income level, establish a fair income distribution system, and reduce the burden of the people in medical care, education and housing, these are more urgent.

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