Thursday, July 16, 2020

Did China’s GDP growth 3.2% or 60%? — Scott Sumner

China just reported 3.2% GDP growth in Q2. That number sounds about right to me. But I can’t help noticing that if China reported its GDP growth rates the way the US government does, it would have reported roughly 60% growth in Q2. At least I think it would have; see if you can follow my argument and correct any errors….
The Money Illusion
Did China’s GDP growth 3.2% or 60%?
Scott Sumner

2 comments:

Kaivey said...

Apparently, China is happy to let America believe that its growth is lower than that of the US.

Peter Pan said...

When China has 1 trillion people, its growth will be very small indeed.

Small, not slow.