Wen |CBN reporter Cui Peng to observe the company's method to see China become the world's second largest economy, although not bad, but also tolerate not much optimism. Recently, the deputy governor of the People's Bank of China, the State administration of foreign exchange, in an interview with the Chinese reform magazine, "by the Way"-"China is actually the world's second largest economy", this is not officially issued, but this is the first time the Chinese authorities to positively admit. The attitude of the vice President of Yi Gang basically reflects the Chinese attitude towards this matter: this should be a positive message in principle--China's economic growth is good, and even one of the most opposed to "GDP" would not think that the news is more frustrating than China's GDP running back to Germany-but it's nothing to be excited about, China should be. According to classical economic theory, if not in the Malthusian era, the world's GDP per capita should be less and less than the average, but the process is very slow. That is to say, economists tell us that not only do we have an economic total but also GDP per capita is certainly going to surpass that of the US, but most people who can see the article may not be able to catch up. And if China's per capita GDP, economic structure, national innovation capacity and other indicators to compare the United States, it is not the first and second gap. We can make the topic more specific, perhaps it is necessary to talk about the definition of GDP again. gdp= private Investment + consumption + pure exports + government spending, and China's local government in the GDP of this matter has been "digital, official figures" tradition, coupled with some other factors, China's GDP should have a certain amount of water. But as far as GDP is concerned, its exponential significance for a country's economy is probably similar to the exponential meaning of turnover for a company: 1. A company with a high turnover is likely to lose money because it can be costly, so a company with a high turnover is not necessarily the best company- This is why China's GDP, although more than Japan's, but from the public point of view, Japan last year, the average income of 37,800 U.S. dollars, and China's per capita income is only 3600 U.S. dollars. 2. Companies with high turnover must be very influential-China's exports, car purchases and steel production have ranked first in the world. From luxury shops in Paris to Australian iron ore, or Japanese and American cars, these depend on the purchasing power of the Chinese government and citizens. Any country will increasingly feel pressure from China to help developing countries gain a greater say in the World Bank and the International Monetary Fund. 3, but a low turnover and a large number of companies must be a bad company, this situation, just look at the 1950-year history of China to know. Just as companies want to serve not only a world-class company but also a higher salary and benefits, people who live and work in the second economy get the standard of living and national treatment that match the rankings and are actually more important than the rankings themselves.。 The PPP (Purchasing power Parity, referred to as PPP) is also called the International Comparison Project Act (ICP), which is based on the weighted average of domestic commodity prices with the same commodity price ratios as the benchmark countries for purchasing power parity. ICP is a cross-country comparison system, chaired by the United Nations Bureau of Statistics and the World Bank, which aims to provide an internationally consistent price and volume of GDP and its components. ICP experienced bilateral to multilateral, then to the development process of the subregion comparison (multilateral comparison in the region, and then unite into the global comparison), but the basic idea of the research is to calculate the real ratio between the purchasing power of different countries (PPP as the currency conversion factor) based on the price survey and using the GDP calculated by the expenditure method. To replace the exchange rate by converting a country's GDP into GDP in a benchmark or international currency. GDP is the abbreviation of gross domestic product, or gross domestic product. GDP is usually defined as the total value of all final products and the market values of services provided by the economy of a country or region during a certain period of time. In economics, common GDP and GNP are used to measure the overall level of economic development in the country or region. This is also the current measure used by various countries and regions. Generally speaking, the gross domestic product has three kinds of forms, namely the value form, the income form and the product form. In terms of value form, it is the difference between the value of all the goods and services produced by all resident units in a certain period of time and the value of all the non fixed assets and services invested in the same period, the sum of the added value of all resident units; From the form of income, it is the sum of income directly generated by all resident units in a certain period of time; look at the product form, It is the final use of goods and services minus the import of goods and services.
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