Real GDP, Price Indices and Accounting Improvement in China

Abstract

The real GDP (or constant-price GDP) eliminates price fluctuation, which makes it easier to compare the changes of production, business activities, and economic scale and growth between different periods. China's real GDP accounting adopts the index deflation method, but the representativeness, accuracy, international and vertical comparability of the price indices need to be further improved. This paper suggests that China's real GDP accounting system should be in line with the international standard as soon as possible and adopt the chain price index recommended by NSA2008, so as to standardize the statistical work, reduce potential deviations and omissions, and improve the quality of statistics.