Is China’s economy bigger than we think?

The Main Point

A new study suggests that, if China followed the most recent standards relative to measuring its economy, it would actually be roughly 15% larger than the most recent estimates.

Key Events

China still using outdated method

China uses an antiquated methodology for its GDP tally that undercounts expenditures on things like services and research and development.

 

EU and US revised upward when using new method

When the EU and U.S. revised their respective methodologies to the latest global standard, both saw upward revisions in the size of their economies.

 

China would be revised upward as well

According to a study by two economist, if China did the same, in 2014 its $10 trillion economy would actually be closer to $11.5 trillion.

Sources for this Story:  

What If China’s Economy Is Even Bigger Than It Seems?               

http://www.wsj.com/articles/what-if-chinas-economy-is-even-bigger-than-it-seems-1442901711