How do we know the real size of China's GDP?
As a person who really knows nothing about such matters, I'm wondering if any fellow poddies can tell me if experts can really know how big the GDP of China is? Yes, I have read that there are different ways of measuring GDP, but that isn't what I'm getting at. I assume that no matter what method is used in measuring GDP, the result is only as good as the quality of input data. These 5 points are what have been ping-ponging in my head lately:
- Sometimes I think the Chinese economy is much more massive than it already is because I often see people not reporting money. It is very normal. From what I hear, this goes on at all levels of business.
- Sometimes I think that it is much smaller because China isn't known for transparency, and so I figure the government exaggerates figures to get face and make its population happy.
- Sometimes I think it is a combination of 1 and 2 and the end result is the two factors somewhat cancel each other out.
- Sometimes I think maybe the economists' calculation methods have a way around 3 and 4.
- Or none of the above.
Can anyone give any insight? Sadly, I might not be able to get online much today, but I will check in if I can.
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