In the first half of this year, the United States' GDP reached 13.24 trillion U.S. dollars, an increase of 881 billion U.S. dollars compared to the same period last year, with a growth rate as high as 7.1%.

Doesn't this growth rate seem astonishing to you?

This seems to indicate that the U.S. economy shows no signs of recession at all, but is growing at a high speed.

At the same time, the top few economies in the world have all undergone changes, even affecting their respective rankings.

What is the real situation?

1

In recent years, the absolute value of the United States' GDP has shown a trend of rapid growth, but it should be noted that this growth includes the increase in prices.

After deducting the price factor, the actual growth rate is only 2.4%, and it even dropped to 2.2% in subsequent adjustments. This means that excluding the price factor, the real economic growth rate is not optimistic.

According to statistics, inflation contributed 4.7% to the growth of the United States' GDP in the first half of this year, which is consistent with the situation of high and sustained inflation.

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The GDP growth for the whole year last year was also affected by inflation, with the real growth rate slightly exceeding 2%, while the nominal growth rate was as high as 9%. Last year's inflation contribution even exceeded 7 percentage points.The GDP growth brought about by inflation actually conceals a certain crisis. Inflation has a non-negligible impact on the economy and may even lead to the emergence of stagflation.

High inflation rates imply the rise in the prices of goods and services, which is a burden for both consumers and businesses. The decline in consumer purchasing power and the increase in business costs can ultimately lead to weakened demand and shrinking investment, thereby affecting the stable growth of the economy.

Wall Street analysts generally believe that long-term high inflation may lead to economic recession and even trigger financial risks. With the continuous existence of inflationary pressures, the US economy faces a series of challenges, such as monetary policy adjustments, declining corporate profits, and reduced consumer confidence.

2

In contrast to the economic development of the United States is China's GDP growth.

The GDP of Mainland China in the first half of this year, when converted to US dollars, was 8.55 billion, a decrease of 162.439 billion US dollars compared to last year. This data is significantly different from everyone's understanding, mainly due to the difference in the currency of valuation.

If calculated in yuan, the actual growth rate for the first half of this year reached 5.5%. However, when converted to US dollars, it decreased by 2.7% in the first quarter and 1.1% in the second quarter.

There are two main reasons for this difference.

First, the inflation rate in Mainland China is relatively low, which leads to a smaller contribution to GDP growth. Second, the constraint of the yuan exchange rate is one of the main factors. The depreciation of the yuan exchange rate will lead to a decrease in GDP data valued in US dollars.

However, the narrowing of the decline in the second quarter itself also indicates that China's economy grew faster in the second quarter. It is expected that in the next few years, the growth rate of China's economy will show a rebound phenomenon.The current global economy faces challenges beyond inflation, including the significant impact of global currency exchange rate fluctuations on the economies of various countries. These fluctuations have led to drastic changes in the GDP rankings of countries worldwide and significant adjustments in the economic landscape.

According to data, so far this year, the US Dollar Index has risen by 3.55%, while the Euro has depreciated by 2.28% against the US Dollar. However, the most striking is the Japanese Yen's depreciation of 13.8% against the US Dollar. Due to the sharp decline in the Yen's exchange rate, Japan's GDP, when converted to US Dollars, has fallen below Germany's, dropping out of the top three global rankings. This has caused a certain impact on Japan's economic status.

Although the Euro has depreciated by 2.28%, its decline is smaller than the increase in the US Dollar Index. Due to Europe's still relatively high inflation, the GDP converted to US Dollars for the first half of the year has reached $8.87 trillion, which is 3.7% higher than China's mainland GDP.

All of the above data are the absolute values of GDP denominated in US Dollars. In fact, when comparing the economic conditions of various economies, it is more appropriate to use the GDP growth rate after deducting prices.

If compared from this perspective, our country's growth rate is far higher than that of the United States, Europe, and Japan, which is a healthier economic development.