Creative Signs:"U.S. GDP has'3 defects'and create good opportunities for us"
Over the past few years, China's economic growth has been faster than that of the United States, but regrettably, the GDP gap between the two countries has widened. In 2021, China's GDP reached 17$82 trillion, the GDP of the United States is 22$99 trillion, with a gap of 5$17 trillion. In 2022, China's real growth rate reached 3%, nearly one percentage point faster than that of the United States. However, in dollar terms, the GDP in 2022 is only 181 trillion dollars, while the GDP of the United States has reached 2546 trillion dollars, the gap widened to 7$36 trillion. This is due to the fact that when comparing with the U.S., it is necessary to convert the RMB-denominated GDP to the U.S. dollar-denominated GDP, and the conversion is depreciated due to exchange rate fluctuations. However, next year, with the appreciation of the renminbi, this gap is expected to be significantly reduced, creating better opportunities for us.
Inflation in the United States has also become an important factor in the widening of the gap. In general, we calculate the GDP growth rate by deducting the price factor to avoid the impact of inflation on the data. However, if you compare it in terms of the amount of GDP, the price factor is included. In 2022, for example, the GDP of the United States reached 25$46 trillion, compared to $22 in the previous year99 trillion dollars, an increase of 2$47 trillion, with a nominal growth rate of more than 10%. This contains a lot of moisture caused by the price of goods. In 2023, the US CPI is expected to contribute 3 percent to GDP for the whole year5% to 4%, while price growth in our country is not expected to exceed 08%。In this way, the gap in the absolute amount of US GDP is likely to widen further. However, we can take advantage of our low inflation situation to improve the economy, and when inflation in the United States comes down, their "advantage" will no longer exist.
The debt problem in the United States is also a fatal flaw in its optimism about its economic outlook. Although it looks like its GDP has increased by more than $2,000 billion, it is debt that is growing faster. At the beginning of June, the total debt of the United States reached 314 trillion dollars, which by the beginning of November had increased to 337 trillion dollars. Rising debt, coupled with persistently high inflation, makes the economic outlook for the United States frantic from any perspective. This provides us with a valuable opportunity to take advantage of our lower debt and stable economic environment to accelerate our development and thus close the gap with the United States.
Although the current data shows that the GDP gap between China and the United States is widening, we need to see three shortcomings in the US economy that cannot be ignored. Exchange rate factors have led to a loss in the conversion of RMB-denominated GDP to US dollars, but we are optimistic about GDP next year in anticipation of RMB appreciation. The inflation problem has widened the nominal gap in US GDP growth, but we can take advantage of low inflation and continue to improve the economy and wait for the time when US inflation will come back. The debt problem has become a fatal wound to the US economic outlook, and our stable economic environment and low debt levels present us with valuable opportunities. So, in my opinion, the gap between China and the United States is expected to narrow significantly in the coming years. We should seize the opportunity to accelerate development, achieve leapfrog economic growth, and move to a higher stage.