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

The comments came after the NBS announced on Thursday 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 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, the Xinhua News Agency reported on Thursday.

The NBS said in a release on its official website 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 the 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 the increase in the overall volume of the revised 2023 GDP, it will not significantly affect the 2024 GDP growth rate, as the revised 2023 GDP serves as the base for the preliminary calculation of 2024, and the growth rates of various industry-related indicators will be used for the calculation, per the release.

The NBS further emphasized that, under China's current GDP accounting system, revisions to the GDP data for a given year generally influence the nominal total GDP of the next year but exert a negligible impact on its growth rate. Historical evidence from the last four economic censuses shows that such revisions have not substantially affected GDP growth rates 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 also been changed from the cost approach to the rental approach in the revision of GDP data released on Thursday. 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. 

This adjustment will 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.

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 to the rental approach. 

Overhauling the existing calculation method will offer a more precise portrayal of the nation's economic progress and significantly improve the scientific accuracy and international comparability of GDP data, the NBS said.

Per 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 previous method, resulting in a corresponding rise in GDP for the year. 

Global Times