withWorld BankThe published data shows that from 2022 to the first three quarters of 2023,China's GDPPercentageU.S. GDPfell from 70% to 64%, and the GDP gap between China and the United States widened. This data is causing concern because of ChinaEconomyThe growth rate is more than twice that of the United States, but why is the gap getting wider and wider?In fact, the widening of this gap is mainly related to nominal growth, real growth andEconomycomposition. After understanding these reasons, we should not worry too much because these factors are changing positively.
Observe the nominal growth rate of GDP,China's GDPA year-on-year increase of 52% whileU.S. GDPA year-on-year increase of 25%, China is clearly ahead of the United States. However, the United StatesInflation ratehigher than in China, this is due toThe US dollar raises interest ratesand the result of the continued depreciation of the renminbi. So, in terms of nominal growth, GDP growth in the United States is higher than in China. But we need to pay attention to the fact that AmericanInflation rateIt will begin to decline slowly, and its contribution to GDP will decrease in the future, while the yuan is appreciating, and in the future our GDP will have an advantage when converted into dollars.
In addition to the difference between nominal and real growth, there are also significant differences in the composition of GDP between China and the United States. First of all, fromPrimary sectorwithSecondary sectorChina is clearly ahead of the United States. ChinesePrimary sector(agriculture, forestry, animal husbandry and fishery) accounts for 8% of GDP, while the United StatesPrimary sectorOnly 11%。InSecondary sectorIn terms of manufacturing,Manufacturing in ChinaGDP accounts for 27%, while U.S. manufacturing accounts for only about 10%. Comprehensively consider the actual manufacturing industryValue addedand GDP weight,Manufacturing in ChinaGDP is 1 of the United States94 times, which is twice as much as the United States.
However, the gap between China and the United States lies mainly in the tertiary sector. The tertiary industry accounts for more than 80% of the GDP of the United States, which is the main support for the huge consumption of the United StatesEconomyIndustry. Private consumption accounted forU.S. GDP68% up to 17$3 trillion, which is close to China's total GDP last year. But unlike China, U.S. consumption is largely focused on services, for exampleHousehold consumption expenditureLess than $6 trillion is spent on goods, while more than $11 trillion is spent on services. In addition, industries such as culture and entertainment, sports, and catering have also created 42% of GDP, which is higher than China's.
As can be seen from the above analysis, China'sEconomyGrowth was largely supported by the physical manufacturing sector, while the growth in the United StatesEconomyIt mainly relies on service consumption. However, China has made a clear future for the futureEconomyGrowth depends on consumption, and recent data also show that the proportion of service consumption is gradually increasing. That means we're making up for our shortcomings, and that's where our best chance to overtake the U.S. is. By continuing to transform consumption, we are expected to further narrow the gap between China and the United States.
Looking back at the reasons for the widening of the GDP gap between China and the United States mentioned in the article, we can see that the difference between nominal and real growth and the difference in the composition of the economy are the main factors. We should be confident in this, because these factors are changing, and we are expected to strive for more for China in the futureEconomyRoom to grow. And we should also see that China and the United States are thereEconomycomposition, which provides us with significant opportunities for development. By continuously promoting the improvement of the consumption structure, China is expected to be in theEconomyFind more breakthroughs in the transformation.
In summary, although the GDP gap between China and the United States has widened, we should remain optimistic and confident. By continuing to deepen reform and opening up, optimizationEconomystructure, increase innovation, China is expected to make up for shortcomings, accelerate catch-up, and achieve higher-quality development. Let's work together for China'sEconomyTransformation and development contribute!