The head of the National Bureau of Statistics' Accounting Division answers reporters' questions regarding the revision of the 2023 GDP data

According to the Zhitong Finance APP, on December 27, the head of the National Bureau of Statistics' Accounting Department answered reporters' questions regarding the revision of the 2023 GDP data. He stated that based on changes in the foundational data after the economic census and the reform of the accounting method for urban residents' self-owned housing services, the National Bureau of Statistics revised the preliminary GDP accounting figures for 2023 according to the GDP accounting plan for the economic census year. After the revision, the GDP for 2023 is 12,942.72 billion yuan, an increase of 33.69 billion yuan compared to the preliminary accounting figure, with a growth rate of 2.7%. Among them, based on the data from the fifth national economic census, the gross domestic product increased by 20.257 billion yuan compared to the preliminary accounting figure, with a growth rate of 1.6%; the implementation of the reform of the accounting method for urban residents' self-owned housing services resulted in an increase of 13.433 billion yuan in gross domestic product, with a growth rate of 1.1%.

The original text is as follows:

The head of the National Bureau of Statistics' Accounting Department answers questions from reporters regarding the revision of the 2023 GDP data

On December 27, 2024, the National Bureau of Statistics released the "Announcement on the Revision of the 2023 Gross Domestic Product Data," and the head of the Accounting Department accepted an exclusive interview with the China Information News.

Question: Why is it necessary to revise the national GDP data for 2023 after the fifth national economic census?

Answer: Revising GDP data is a common practice internationally and has been a working convention of our government's statistics. According to our current national economic accounting system, annual GDP must undergo two calculations. The first is the preliminary accounting, which, due to limitations in data sources, mainly uses progress statistical survey data and departmental administrative records for accounting. The second is the final verification of GDP, which mainly revises the preliminary accounting results based on annual statistical data, fiscal settlement data, and departmental administrative records. In the year of the economic census, the preliminary GDP accounting figures for that year must be revised based on the economic census data.

2023 is the year of the fifth national economic census (hereinafter referred to as the fifth census). This census covers all legal entities, industrial activity units, and individual businesses engaged in the secondary and tertiary industries within our country. The national economic census provides comprehensive, rich, and accurate foundational data for GDP accounting. Therefore, the National Bureau of Statistics revised the preliminary GDP accounting figures for 2023 based on the economic census data and relevant departmental information, following the GDP accounting methods of the fifth national economic census.

Additionally, considering that the conditions for reforming the accounting method for urban residents' self-owned housing services have matured, during this revision process, the accounting method for urban residents' self-owned housing services was changed from the cost method to the rental method, and the GDP data was revised simultaneously.

Question: Why is it necessary to implement the reform of the accounting method for urban residents' self-owned housing services? How will GDP change after the reform?

Answer: According to international standards for national economic accounting, the services of residents' self-owned housing need to be included in GDP accounting. Since there is no actual leasing behavior for residents' self-owned housing services and no actual market price exists, it is necessary to virtually calculate their service value. Countries around the world adopt either the rental method or the cost method to account for the added value of residents' self-owned housing services based on their national conditions, and both methods comply with international standards In the past, due to the underdeveloped housing rental market in our country and the weak representativeness of rental data, our country has always used the cost method to calculate the value added of self-owned housing services for residents. In recent years, the urban housing rental market in our country has gradually matured, and the relevant statistical monitoring system has been continuously improved. Currently, the conditions are in place to adjust the accounting method for self-owned housing services of urban residents from the cost method to the rental method, and most major economies internationally adopt the rental method. Reforming the current accounting method for self-owned housing services of urban residents in our country can more accurately reflect the state of economic development and further enhance the scientific nature and international comparability of GDP data.

From the accounting results, after adopting the rental method for self-owned housing services, the value added of self-owned housing services for residents in our country increased by 1.3433 trillion yuan in 2023 compared to the cost method, and the GDP for 2023 correspondingly increased.

Question: After the revision of the national GDP data for 2023, what changes will there be in terms of total GDP, structure, etc.?

Answer: Based on the changes in basic data after the economic census and the reform of the accounting method for self-owned housing services of urban residents, the National Bureau of Statistics revised the preliminary GDP accounting figures for 2023 according to the GDP accounting plan for the economic census year. After revision, the GDP for 2023 is 129427.2 billion yuan, an increase of 336.9 billion yuan compared to the preliminary accounting figure, with a growth rate of 2.7%. Among them, based on the data revised from the fifth economic census, the gross domestic product increased by 202.57 billion yuan compared to the preliminary accounting figure, with a growth rate of 1.6%; the implementation of the reform of the accounting method for self-owned housing services of urban residents increased the gross domestic product by 134.33 billion yuan, with a growth rate of 1.1%.

After the revision of the GDP data for 2023, the structure of the three industries has changed. The value added of the primary industry accounts for 6.9% of GDP, a decrease of 0.2 percentage points compared to the preliminary accounting figure; the value added of the secondary industry accounts for 36.8%, a decrease of 1.5 percentage points compared to the preliminary accounting figure; the value added of the tertiary industry accounts for 56.3%, an increase of 1.7 percentage points compared to the preliminary accounting figure. The proportion of the value added of the tertiary industry in GDP has further increased.

Question: What impact will the revision of the national GDP data after the fifth economic census have on the national GDP growth rate for 2024?

Answer: According to the current GDP accounting method in our country, the preliminary annual GDP accounting mainly uses the speed method based on relevant indicators, which means that the growth rate of value added in various industries is first estimated based on the growth rates of relevant professional indicators, and then the total value added for the year is calculated based on the growth rate of value added and the previous year's value added. Generally speaking, revisions to the current year's GDP data will affect the total GDP for the following year but will have little impact on its growth rate.

In the preliminary accounting of GDP for 2024, the revised figure for GDP in 2023 will be used as the base, and the growth rates of relevant indicators in different industries will be utilized for accounting. Therefore, although the revised figure for GDP in 2023 has increased in total, it will not have a significant impact on the GDP growth rate for 2024. Based on the situation from the past four economic censuses, data revisions have not had a significant impact on the GDP growth rate for subsequent years.

Question: After the revision of the national GDP data for 2023, will there be a need to revise historical GDP data? Q: According to China's national economic accounting system and international practices, when there are updates or changes to the basic data, accounting methods, and classification standards used for GDP accounting, it is necessary to revise historical GDP data. After the fifth national economic census, the National Bureau of Statistics will revise historical GDP data based on the 2023 GDP revision results and the reformed accounting methods for urban residents' self-owned housing services. Due to the large workload involved in revising historical GDP data, this work is currently in progress. Once the revision of historical GDP data is completed, it will be published on the National Bureau of Statistics website.

Q: After the fifth national economic census, the national GDP data for 2023 has been revised. Will the regional GDP data also be revised at the same time? When will the related revision results be published?

A: After this census, we will revise both the historical data of the national GDP and the historical data of the regional GDP. Currently, the National Bureau of Statistics is systematically revising the preliminary accounting figures and historical data of the regional GDP for each province (autonomous region, municipality directly under the central government) based on the data from the fifth national economic census. After the revision, the final verified figures for the regional GDP in 2023 will be authorized by the National Bureau of Statistics to each regional statistical bureau and will be published together when the preliminary accounting figures for the regional GDP for the entire year of 2024 are released in January 2025; the results of the historical data revision for the regional GDP will be published in the second half of 2025 through the National Bureau of Statistics data release database and the statistical yearbooks of each region.

This article is compiled from the National Bureau of Statistics, edited by Chen Wenfang of Zhitong Finance.