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The National Bureau of Statistics (NBS) stated on Friday that revising GDP data is a common international practice and has always been a routine part of China’s government statistics work. And the revised-up GDP figure for 2023 will not have a significant impact on the GDP growth rate for 2024.

The comments came following the NBS announcement on the previous day that it has revised the preliminary GDP estimate for 2023, based on China’s GDP accounting system and the results of the Fifth National Economic Census. China’s 2023 gross domestic product (GDP) has been revised to 129.4 trillion yuan ($18 trillion), representing an increase of 3.4 trillion yuan from the preliminary calculation, according to the revision results, Xinhua reported on Thursday.

The NBS said in a release on its official website on Friday that revising GDP data is a common practice internationally and aligns with China’s national economic accounting system. China’s GDP calculations involve two rounds: a preliminary figure, based on progress statistical survey data and administrative records, and a final verification that adjusts preliminary figure.

In years with an economic census, the census data is used to revise the preliminary GDP figures, as it provides comprehensive, rich, and accurate foundational data for GDP accounting. Despite an increase in the total 2023 GDP revision, it is expected to have no significant impact on the 2024 GDP growth rate, the NBS said.

The NBS also highlighted that, based on China’s current GDP accounting methods, revisions to the GDP data for a given year typically affect the total GDP for the following year but have minimal impact on its growth rate. Historical data from the past four economic censuses demonstrate that such revisions have not significantly altered the GDP growth rate in subsequent years.

When asked about the impact of this GDP data revision on the total GDP and its structure, an NBS official explained that after the revision, the value added from the tertiary industry accounted for 56.3 percent of the 2023 GDP, marking an increase of 1.7 percentage points from the preliminary estimate. This reflects a further expansion of the tertiary industry’s share in GDP.

The method for calculating the housing services of urban residents has been changed from the cost approach to the rental approach in the revision of GDP data released on Thursday. This adjustment is expected to more accurately reflect the state of China’s economic development and further enhance the scientific nature and international comparability of GDP data, according to the NBS.

The NBS stated in Friday’s release that according to international standards for national economic accounting, the housing services of residents must be included in GDP calculations.

In recent years, China’s urban rental housing market has steadily matured, and related statistical monitoring systems have been progressively refined. The current conditions make it favorable to shift the calculation method for urban residents’ housing services from the cost approach to the rental approach.

Overhauling China’s existing calculation method for urban residents’ housing services will offer a more precise portrayal of the nation’s economic progress and significantly improve the scientific accuracy and international comparability of GDP data.

According to the calculation results, switching to the rental method increased the value added from urban residents’ housing services in 2023 by 1.3433 trillion yuan compared to the cost method, resulting in a corresponding rise in GDP for the year.

Global Times