GDP Update 2023: US ($27.5T) vs CHINA ($17.6T) [US up by $10 Trillion]

[jhungary]

My friend we are saying the same thibg except one major difference. Nominal GDP is used to represent size of economy as of now. For any other purposes or analysis real GDP is used. As i have been doing this consistently i know this for a fact. My sister and my brother are PhD in economics so we have detailed discussions on every now and then.

Real GDP is not just for difference but all the planning is done on real GDP. For example if u r in current year and planning for next year GDP growth you will use current nominal GDP as base but all the projections and working for next year will be on the basis of real growth in output without givibg and consideration to price increase except for tax computations.

Furthermore if u r comparing two countries which is topic at hand then then in terms of GDP only PPP is the real matrix to compare. Nominal GDP do not give any comparative analysis as it is like comparing apple with orranges.

Anyways lets move on and lets agree to disagree ..

Well, that's my point all along, maybe you misread it or whatever I don't know.

I will say that there is a huge argument as to which parameters is preferred, however, I will also say this, while it is true that Real GDP offer more precise snapshot as to the economic situation in one country, that is only true when that country practice free trading policy, for a country like China, where the government have an ultimate power to decide monetary policy and market movement, real GDP wouldn't mean much because the figure can be manipulated.