China's GDP will grow by 5 in 20232%, and the United States grew by 25%, why is the gap between the two countries widening?
By now, several of the world's major countries have released their economic reports for 2023.
First, let's take a look at China's GDP in fiscal year 2023.
According to data released by the National Bureau of Statistics, in 2023, the national GDP will reach 1260582 billion yuan, a year-on-year increase of 52%, an increase of 2 compared to 20222 percentage points. The average price of RMB to US dollar for a whole year is 70467, which translates to US $17,8889900 million, a difference of about $200 billion from the International Monetary Organization's China's GDP in 2022.
Let's take a look at the GDP of the United States, in 2023.
The latest figures released by the U.S. Department of Commerce show that U.S. gross domestic product rose 08% with an average annual growth rate of 31%, exceeding U.S. expectations.
Throughout the year, the U.S. gross domestic product (GDP) in the first quarter of 2022 will be nearly 6$55 trillion, and there will be 6 in Season 2The $8 trillion increase will approach 6 in the third quarter$93 trillion, which will break $7 trillion in the fourth quarter, and the GDP for the whole year will be 27$37 trillion, compared with last year, after deducting the price increase of various goods and services, achieved 2A significant increase of 5%.
Looking at the comparison of GDP between China and the United States, the GDP growth rate of the United States is much lower than that of China, and the GDP growth rate of China is higher than that of the United States27%。
Theoretically, China's faster economic growth will reduce the GDP gap between China and the United States, but the reality is that the GDP of these two countries is not shrinking, but expanding.
The difference in GDP between China and the United States in 2022 was 7,364.5 billion yuan, and will reach 9,480 billion yuan by 2023; In just one year, the huge difference in GDP between China and the United States reached $125.5 billion, which is almost double that of Canada.
Many Chinese netizens are curious, how can their economic development speed surpass that of the United States, but the gap in GDP is constantly widening.
Among them, the most important is the exchange rate.
Especially from 2022, as the US Federal Reserve continues to raise interest rates, the US dollar index continues to **, driving the depreciation of currencies around the world, with the RMB depreciating against the US dollar being the most significant.
In 2021, the average exchange rate of the RMB against the US dollar was 64515, and in 2022, it will fall to 67261, and it will fall to 7 in 20230467。
As the renminbi continues to depreciate against the dollar, China's GDP is growing relatively slowly in dollar terms, and the gap between the US and China's GDP is widening.
The gap between the GDP of China and the United States has been narrowing until 2021, and the difference in GDP between China and the United States was 52 trillion, of which China's GDP in the United States accounted for 77%, a new record.
However, from 2022 onwards, there will be about 74 trillion, and in 2023 it will continue to expand to 948 trillion.
So, is the economic gap between China and the United States really widening? This is not the case, and in fact, China's GDP is already narrowing the gap with the United States.
If converted in the same currency, China's GDP in 2023 would be 19$54 trillion; Although the GDP of the United States is still expanding, this is no longer good news.
However, everyone knows that between 2020 and 2022, the United States continued to reduce interest rates, putting a lot of liquidity into the United States, and the CPI in the United States was also rising, even exceeding 9% at the peak, and a large part of this was due to inflation, not in comparable terms.
In this regard, I think the most attractive is GDP, purchasing power parity refers to a country's real monetary purchasing power to measure GDP, can more objectively and accurately reflect a country's production and consumption status, without being disturbed by exchange rate fluctuations, therefore, more reflective of a country's economic achievements.
If you compare it with PPP, China's GDP surpassed that of the United States in 2016, and the distance between it and the United States has continued to widen in the past two years, and in 2022, China's total PPP GDP will surpass that of the United States4$87 trillion.
Based on the growth rate of the Chinese and US economies in 2023, China's GDP will continue to maintain a greater distance from the United States.
Overall, China's GDP growth has far outpaced that of the United States in the past two years, but the gap between China and the United States has widened, and this is due to the role of monetary policy, rather than the real embodiment.
As for China, people don't care much about the dollar GDP, which is greatly affected by monetary policy, and it can't really reflect the development of a country, so we just look at the growth rate of RMB GDP.