The GDP fudge: China edition
Monday, March 2, 2020 - 12:22
in Mathematics & Economics
For all its shortcomings, the gross domestic product (GDP) of a country remains an important barometer of its economic health, strongly influencing both private and public spending. Though conceptually simple as the total dollar value of all goods and services produced within a specified time frame, calculating GDP is tricky in practice and can be manipulated by individual firms in a strategy known as earnings management.