The world’s second largest economy just got a bit bigger—at least, according to revised reports that put China’s economic state in 2013 at least 3.4 percent larger than they had initially said.
Friday, China announced that their economy was 3.4 percent larger than they had initially reported in the previous year. This time around, a more accurate reporting of services and their economic output impact helped bring forth results far more accurate than initially reported.
The new methodology that produced 2013’s revised data will be used to calculate China’s gross domestic product for 2014. The anticipated 2014 GDP data will be released by next month.
The new calculations added as much as 1.92 trillion yuan (about $308.3 billion USD) to China’s economy back in 2013. That bought the 2013 total to 58.80 trillion yuan. The revision also increased economic activity for services back in 2013 to 46.9 percent, up from the previous figure of 46.1 percent.
The statistics bureau also mentioned that they ‘will release revised GDP figured for earlier years using their new methodologies.’ Rhodium Group, an information provider, expects China’s recalculation system to be based upon systems used by the U.N. and other similar organizations, namely the widely used System of National Accounts 2008.
Analysts now say that the recalculations will move an important date forward, as much as a decade. That important date projects when China’s economy will potentially surpass the United States’ economy as the world’s largest. The nation is expected to surpass the United States as early as 2024 or 2025.
The nation’s National Bureau of Statistics announced earlier in the week that the recently reported revision would be ‘at least 3 percent.’
But, the newer way of doing things isn’t expected to ‘fix’ some of the growth issues that the Chinese economy faced over the past year. China is projected to miss their yearly growth target, set for 7.5 percent in 2014, for the first time since back in 1998.