Due to exchange rate fluctuations, the GDP of some countries has changed a lot after converting it into US dollar. Even the GDP of local currencies is clearly growing, but after converting it into US dollar due to currency depreciation, GDP has shown negative growth.
This situation often occurs in Japan and some European countries, because their economic growth rate is often not as good as the fluctuation range of exchange rate. Today, Nansheng will take a look at the situation in Japan in the past decade. As shown in the figure below:
In 2008, due to the financial crisis, we can reach the local currency, Japan and the United States both showed negative growth - Japan's GDP dropped from about 507.7 trillion yen to about 480.2 trillion yen in 2009, and the United States' GDP also dropped from about 14.7186 trillion US dollars to about 14.4187 trillion US dollars.
But if converted into US dollars, Japan's GDP has increased from about US$5.0379 trillion to about US$5.2314 trillion. Obviously, under the influence of the exchange rate, if we only look at Japan's GDP calculated by the US dollar, it will not fully reflect the impact of the financial crisis.
0000 2010 impact of the financial crisis was basically removed. According to the Japanese yen, Japan's GDP is increasing from about 500.354 trillion yen to about 540.402 trillion yen in 2017, an increase of about 8%. But if we look at Japan's GDP calculated in US dollars, it has dropped from US$5.7 trillion to US$4.87 trillion.
Let’s take a look at the overall situation in the decade from 2008 to 2017: Japan’s decline by 3.3% in terms of US dollar, while the United States’ GDP grew by 31.74% during the same period, which undoubtedly exaggerates the gap between the two. In fact, Japan’s GDP in the past decade has not declined, but has increased by 6.44%.
revealed a truth, Nan Sheng said that the so-called huge amount of overseas GNP in Japan also does not exist
The following figure shows China and Japan's GDP in the past decade (changed into US dollars) and GNI (GNI is the so-called GNP, United Nations has used GNI to replace GNP).
We can find that China's GDP and GNI are almost not much different, within 0.5%. Japan's GNI is more than GDP, but the gap is not big. Let’s look at the last line in the picture. For the overall situation in the past decade, Japan’s GDP and GNI gap is only 3 percentage points higher.
Doesn’t it mean that Japan’s large amount of wealth is abroad? I have invested heavily in other countries, why are there so few differences between GDP and GNI? The answer is very simple. In the era of globalization, all countries will invest in other countries, and in turn, other countries will also invest in Japan.
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