Falling behind in the catch-up?The mystery of the GDP gap between China and the United States, where went wrong?
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Isn't it catching up?The GDP gap between China and the United States has increased from 52 trillion yuan to 948 trillion yuan, what happened?
And just some time ago, the U.S. Department of Commerce released an economic report for 2023, in which the U.S. GDP is expected to reach 2737 trillion yuan, an increase of 25% (excluding ** factor). Back to our country: according to the statistics published by **, the GDP in 2023 will reach 186 trillion yuan, which is equivalent to 178 trillion yuan.
In terms of GDP alone, China and the United States will have a GDP of 948 trillion yuan, which is, frankly, quite a big gap. What's more, in recent years, the GDP gap between China and the United States has widened rather than narrowed.
According to official figures, the GDP of China and the United States will reach 5At 2 trillion yuan, China's GDP accounts for 77% of that of the United States. At that time, many countries and international organizations**, China's GDP would surpass that of the United States within a decade. However, the truth is that since then, the GDP gap between China and the United States has widened.
Didn't China catch up?What is the reason for the widening GDP gap between China and the United States?In my opinion, this question needs to be answered from several angles.
GDP growth in 2023 is already more than 5%, more than double that of the United States, which is already the highest level in nearly two years. This is mainly related to the exchange rate: as long as the national currency depreciates, the GDP gap between China and the United States widens.
The second reason is **: after the pandemic, the United States experienced inflation, while we experienced deflation. Inflation causes the dollar to depreciate in the United States, while deflation means an increase in purchasing power, and from this point of view, Americans have much higher purchasing power and welfare than we do, even though our GDP is not as high as in the United States.
Of course, there is another factor that cannot be ignored, and that is the development of the national economy. In any case, it is the vitality of the national economy that affects a country's exchange rate. As long as the country's economy is dynamic and has an important voice in the world, the national currency should appreciate rather than depreciate.
I've seen online that the U.S. oppresses the U.S. by constantly printing money, raising interest rates, and devaluation its currency, but none of that matters.
To put it simply, as long as our economy is strong enough to have a say in the market, any action by the United States will not have much of an impact on our currency.
As the saying goes, if you don't drown, blame you for your lack of gravity. Sometimes it's better to find the reason within yourself. But if we blindly blame other countries, then in the long run, it is also good that we do not grasp GDP.