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The GDP data released by the United States shows that its total value reached 2736 trillion US dollars, more than 55% of China's GDP. In the face of such disparities, we should not be overly concerned, but should focus on real growth. In fact, over the past year, the U.S. economy has grown at a rate of only 25%, less than half of China's. China's GDP growth rate last year was 52%, more than the growth rate of the United States. This year-on-year growth rate is a real growth rate after excluding the price factor, and it is more reflective of the actual situation of the economy. In contrast, GDP growth in the United States was mainly affected by inflation, which was 38 percentage points came from inflation. It can be seen that the impact of inflation in US economic growth is greater than that of real growth. In addition, the current economic growth rate of the United States is also declining significantly, which may have a large impact on its domestic demand. Therefore, we should not be overly concerned about the widening GDP gap between China and the United States, but should focus on the actual economic situation behind the gap and the opportunities and challenges facing the United States itself.
Although the total GDP of the United States exceeds that of China, this does not mean that the level of economic growth in the United States is higher, because the total GDP includes the influence of price factors. According to the data, the GDP of the United States in 2022 is 25$74 trillion, an increase of 63%。However, this growth rate is nominal and includes the contribution of inflationary factors. In fact, the U.S. reported a real growth rate of only 25%, indicating that inflation contributed 38 percentage points of growth. This means that inflation has played a large role in the GDP growth of the United States. Of course, it should be noted that inflation in the United States is gradually decreasing, and the contribution of inflation to GDP in 2022 even reached 7 percentage points. By comparison, China's CPI for the whole year was just 02%, so it does not enjoy the "growth" that comes with inflation. This further proves that China's economic growth is healthy and effective.
Although the United States has a total GDP that surpasses China's, its economic growth faces a number of challenges. First, the U.S. economic growth rate is declining significantly. In the third quarter of last year, after adjustment, the growth rate of the United States increased from 49% to 52%, while now the fourth-quarter quarter-on-quarter growth rate has fallen to 33%。One of the reasons for this is that the excess household savings formed during the pandemic are being depleted rapidly, which is a huge challenge for boosting domestic demand in the United States. While the current retail sales data in the United States is performing well, it is largely influenced by the holiday season. The impact of high interest rates will also be felt gradually, which is likely to lead to a significant contraction in consumption in the first quarter. Therefore, it is time for the United States to think seriously about how to respond.
The widening GDP gap between China and the United States has attracted widespread attention, but we should take an objective approach to this issue. Judging by the data, the total GDP of the United States exceeds that of China, but this does not mean that the level of economic growth in the United States is higher. What we need to focus on is real growth and economic stability. According to statistics, China's GDP growth rate last year was higher than that of the United States, and it was dominated by real growth and less affected by inflation. At the same time, U.S. economic growth faces a number of challenges, such as declining growth rates and the growing impact of high interest rates. Therefore, we do not need to worry too much about the widening GDP gap between China and the United States, but should pay more attention to the development of our own economy and actively respond to the opportunities and challenges that may arise.
In the future development, we should continue to strengthen the optimization and adjustment of the domestic economic structure, improve innovation capabilities and industrial upgrading, and promote the development of the real economy and the progress of scientific and technological innovation. At the same time, strengthen international cooperation, actively integrate into the process of globalization development, actively carry out first-class cooperation and investment cooperation, broaden the market, and enhance the competitiveness and comprehensive strength of China's economy.
In addition, we should also pay attention to the importance of personnel training and education, actively promote the cultivation of innovative talents, increase the quantity and quality of high-tech talents, and continuously improve the core competitiveness of China's economy. At the same time, it is necessary to strengthen cultural construction, inherit and develop the excellent traditional culture of the Chinese nation, strengthen the building of spiritual civilization, create a good social environment and values, and promote the dissemination and promotion of the core socialist values.
All in all, there is no need to worry too much about the widening GDP gap between China and the United States, and we should strengthen our own development and actively respond to various challenges and opportunities based on real growth and intrinsic economic advantages. At the same time, we will continue to optimize the economic structure, strengthen cooperation and competition, and promote the healthy development of the real economy and the improvement of innovation capabilities, so as to achieve sustainable economic development and high-quality growth.
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